Singapore Business Review (January - March 2024)

5 Reasons Why You Should Do a Commercial Photoshoot

In today’s competitive world of business,

companies are more aware of the importance of corporate photography in creating a specific identity for their company and its employees.

There is often a general worry that corporate photographs can come across as stiff and overly theatric. However, with the right expertise and direction from our photographers, corporate photography can result in authentic and dynamic portraits too.

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white room studio 1. Creating a Cohesive Brand Identity

A consistent set of group photos can be used to reinforce Studio the company’s brand identity. At White Room Studio, we analyse the ways in which these photos can be utilised across various marketing materials and platforms to establish a recognisable and professional image.

2. Enhancing Employee Engagement

One of the objectives of a corporate photoshoot is to engage with employees and make them feel valued. The act of investing in such activities by a company serves as a recognition gesture, potentially leading to an increase in employee loyalty and job satisfaction.

3. Documenting Company History and Growth

Every small detail in a group photoshoot can serve as a visual representation of the company’s growth over different periods of time. Recognising the importance of capturing the employees’ journey and the brand’s milestones through these images, the company could effectively highlight various stages of growth and progress. It is not only about branding but by creatively demonstrating a personal side of the business, corporate photography can create a connection with customers as well as differentiate a company from its competitors.

Declan O'Sullivan, CEO of Kerry Consulting

4. Capturing and Aligning with Company Culture

Corporate photoshoots provide an excellent opportunity to capture the company’s culture, values, and employee interactions visually. These images can be used to showcase a cohesive and vibrant work environment, which aids in attracting potential candidates who resonate with the company’s values. For HR professionals, this serves as a powerful tool for talent acquisition, as candidates are more likely to be drawn to a company whose culture aligns with their own progress.

5. Creating Content for Internal and External Communications

With a good commercial shoot, companies could generate content for internal and external communications such as annual reports. Nonetheless, they could also use these images effectively to communicate the company’s culture and achievements.

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Visit whiteroomstudio.com.sg corporate@whiteroomstudio.com.sg 219 River Valley Road 238277 +65 6235 7037 | WA +65 8769 6003

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SINGAPORE BUSINESS REVIEW | Q1 2024

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CONTENTS

RANKINGS

SINGAPORE’S TOP 50 INSURERS SEE 50 3.7% YOY ASSET DECLINE IN 2022

COVER STORY

LUMINARIES

38 10 INVESTMENT IDEAS FOR 2024 FIRST 08 Expats from Hong Kong set to boost prime district home demand 09 Meet the 5 types of employees in Singapore 10 'Silver spenders' spur investment opportunities

STARTUP 14 Dozer slashes need for big teams in data app development 15 Aampe boosts app engagement with unique texts 16 Lendela redefines borrowing experience to fight isolation and stigma

SPACEWATCH 18 Carousell HQ embraces circular economy with repurposed, secondhand furnishings

Published Quarterly by Charlton Media Group 101 Cecil St. #17-09 Tong Eng Building 2 SINGAPORE SINGAPORE BUSINESS REVIEW | Q1 2024 BUSINESS REVIEW | MARCH 2018 Singapore 069533

MOST INFLUENTIAL LAWYERS 44 20UNDER 40

INDUSTRY INSIGHT

BRIEFING 24 Pay transparency trend relies on the labour market’s future 26 How brands can avoid inauthentic throwback marketing

CEO INTERVIEW 28 ZALORA seizes opportunity in revenge tourists’ purchasing power 30 Indonesia's Fore Coffee brings its sustainability ethos to Singapore 34 Trust Bank sets the bar for digital banking in the Asia Pacific region

INTERVIEW

48 4 bills businesses should know in 2024 53 Fintech investors now prioritise profitability over valuation 54 Singapore faces cost and investment hurdles in hydrogen push 56 Startups focusing on ‘continuity of care’ flourish in SG’s booming health tech sector

EVENT 57 Generative AI, CBDCs to shape Singapore’s financial future in 2024

32 Lylo elevates short term car rental services with care packages, delivery option 37 How OCBC’s blockchain expertise is powering Singapore’s digital currency ambitions For the latest business news from Singapore visit the website

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SINGAPORE BUSINESS REVIEW | Q1 2024

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News from sbr.com.sg Daily news from Singapore MOST READ

FINANCIAL SERVICES

Why the bank of the future is not really a bank One year after kicking off operations as a full-fledged digital bank, ANEXT Bank CEO, Toh Su Mei shared one of her key takeaways from Singaporeans’ modern banking needs, “Nobody needs another bank in this day and age!”

Pushing this premise, she added, “Which is why we were very clear from the onset on why we do what we do and how [we do it].”

FOOD & BEVERAGE

COMMERCIAL PROPERTY

Here are the top ten trends transforming Singapore’s food Rice and noodles may be replaced as Singapore’s daily food staples by 2040 with healthier foods such as petai, jackfruit, cowpea, arrowroot, azuki bean, buckwheat, amaranth, other variants of Asian yams, beans, and forms of superfoods.

Other trends noted by Deliveroo in its Snack to the Future Report include the rise of breath prints and "mega-nism."

Experts tout SG’s strata commercial spaces as an ideal investment choice Foreign investors who might have taken a step back from investing in prime residential properties in Singapore due to the recent hike in Additional Buyer’s Stamp Duty (ABSD) rates should look into strata commercial spaces instead look into strata commercial spaces particularly those in the Central Business District (CBD), according to Tang Wei Leng of Colliers Singapore.

It's time to rethink loans

BY Jenn Ong The banking experience is transforming on multiple fronts. This is in part accelerated by COVID-19, which drove up digital engagements and shifted customer behaviours and demands. It is perhaps unsurprising that the focus of this change is on service touchpoints. For most financial institutions, the question is how to be empathetic to our customer and whether we can deliver a personalised experience, even if separated from the customer by a screen.

Transforming the retail horizon: experiential retail and digitalisation key in driving postpandemic growth

BY Quan Yao Peh In Singapore, retail sales have essentially returned to pre-pandemic levels.

Consumers are returning to stores to find revamped and refreshed retail concepts that showcase the relevance of the brick-and-mortar store in the post-Covid era. Experiential retail is taking centre-stage as brands highlight their stores as more than just a place to transact, but one where consumers can enjoy themselves.

MOST READ COMMENTARY Property developers must implement antimoney laundering measures now

BY Marc Anley and Kalyani Vasan Singapore’s real estate sector will soon see a tightening of its customer and transaction due diligence requirements. From 28 June 2023, property developers will need to implement enhanced measures to prevent money laundering and terrorism financing This will include the requirement to conduct customer due diligence (CDD) checks on new and existing property purchasers.

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FIRST Unlike luxury or prime markets, mass and mid-tier markets will not be much affected by the potential surge in expats as supply for these markets is abundant. This year, there have been around 17,000 non-landed homes supplied to the mass and mid-tier market.

Expats are likely to rent in Districts 9, 10, or 11

Expats from Hong Kong set to boost prime district home demand

RESIDENTIAL PROPERTY

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ith a significant number of C-suite executives relocating to Singapore from Hong Kong, experts anticipate a potential turnaround in the declining residential market, especially in prime districts.

“We got feedback from agents from the ground, not only from Savills, but across agencies. There had been some inquiries and some signing of leases by expats that came from Hong Kong or were going to be relocated from Hong Kong to Singapore,” Alan Cheong, executive director of Research and Consultancy at Savills Singapore, told Singapore Business Review.

This observation coincides with the fact that as of mid-August 2023, Hong Kong has witnessed a net outflow of 291,000 residents.

Cheong said that whilst the influx is not really “a big wave” but more of “a wavelet,” it still has the potential to direct the market into a slightly positive direction.

As most of the expats from Hong Kong hold positions in the C-suite bracket in Singapore, Cheong said they have the budget

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to rent apartments priced at more than $10,000 (US$7,314) a month.

With Hong Kong expats likely to have budgets between $10,000 and $25,000 (US$7,314–US$18,288), Cheong expects leasing activity to be better in the prime real estate markets.

Cheong believes the expats will likely rent in areas of Districts 9, 10, and 11, where apartments are priced from $10,000 to $17,000 (US$7,314–US$12,434) per month.

Expats with budget constraints are likely to move to the east coast of Singapore in District 15 where rents are lower. A three-bedder apartment in this area would cost around $4,000 to $6,000 (US$2,925–US$4,388) a month, said Cheong.

The influx of expats alongside the tight supply in prime or luxury districts will boost leasing activity in the market, said Cheong.

Sustaining the rental market boost With Hong Kong expats boosting Singapore’s rental market, it is imperative that it is able to retain existing tenants and attract new ones. This can be achieved by keeping rents and the general cost of living to a minimum.

For example, a 30% markdown on rents would create a huge impact on Singapore’s retention of expats, said Cheong.

For the mass- and mid-tier markets, Cheong advised landlords not to push asking rents way past what the market can take.

“If your market is asking for X dollars, don’t push it more than, say, 10% more than that. You start negotiating and say current market price or just slightly above market rent and take on the tenant as soon as you can,” Cheong added.

Keeping rents down should help Singapore become more attractive for multinational companies, which in turn, will bring more expats to the country.

Cheong said multinational companies, particularly in the manufacturing and business services sector are already looking into other Southeast Asian countries like Vietnam for relocation because of the high cost of living in Singapore.

Apart from neighbouring SEA countries, Cheong said Dubai is also emerging as Singapore’s competitor when it comes to attracting expats.

“A few expats have moved to Dubai because it is fast to develop its economy on all sectors and all fronts,” Cheong said.

Should Singapore retain and attract more expats, the residential market may see more leasing activity in the future.

On the flip side, the economic conditions and interest rates will continue to become a threat to the market.

If interest rates fail to become lower, then the economy will be impacted by the higher costs of borrowing. Consequently, companies would not want to expand their office footprint as it would cost them a lot of money. This in turn will reduce the amount of foreign workers in Singapore.

Whilst the influx is not really “a big wave” but more of “a wavelet,” it still has the potential to direct the market into a slightly positive direction

FIRST Businesses [must] better understand the training and skills gaps that workers need the most support with

"Detectives" prioritise sharing information with their team (Photo from Pexels)

Meet the five types of employees in Singapore

F

HR & EDUCATION

ive distinct personas are emerging in workplaces around the globe, and in Singapore, the most prevalent is the "Road Warriors" or employees who prefer flexibility over all else.

According to a survey from Slack, "Road Warriors" make up 26% of Singapore's workforce.

Singaporean "Road Warriors" want to work away from their desk (91%) and work wherever they want in a way that fits their schedule (46%).

"Road Warriors" describe themselves as adaptable (85%), whilst their colleagues describe them as most likely to work from a new location (26%).

Singapore also has a lot of "Detectives" or employees with

a knack for seeking and sharing information. "Detectives," however, are less frequently found in Singapore compared globally (21% vs 30%).

"Singapore’s comparatively younger workforce is a factor here, with Detectives found to be most common amongst older workforces," Slack reported.

"Detectives" are best described as organised (94%), with a preference for figuring things out on their own (85%). They find sharing information with others on the team and finding the right information as quickly as possible most important.

Colleagues describe "Detectives" as the best at finding information (42%), and most likely to know everything going on at the company (52%).

These two personas feel the least supported with the introduction of new technology, with each group feeling their company provides little or no training or information.

"This highlights the importance for Singapore businesses to better understand the training and skills gaps that workers need the most support with, especially in getting a better handle on how to best introduce AI," Slack said.

In Singapore, 34% of desk workers are currently working with AI. Amongst workplace personas, "The Problem Solver" is the most likely to go all in on AI. Twenty per cent (20%) of Singapore's workforce are "Problem Solvers."

The "Problem Solvers" are employees who have an aversion to repetitive tasks, has a work hack for everything, an early tech adopter, and a master of automation. They are obsessed with saving time and being more productive.

The two other personas found in Singapore workplaces are "The Networker" (20%) and "The Expressionist" (12%).

Slack describes "The Networkers" as someone who goes all-in on connection and communication.

They are social, highly collaborative, engaged, and extroverted.

Meanwhile, "Expressionists" prefer visual, less formal communication to express themselves and provide clarity.

NEW IMMIGRATION POLICIES HAMPER HIRING PLANS OF AUSTRALIAN FIRMS WITH SG PRESENCE

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ingapore’s stricter overseas employment framework has deterred some Australian multinational enterprises (MNEs) with a presence in the country from increasing their number of employees.

Data from AustCham Singapore showed that 42% of Australian MNEs do not plan to change their number of employees in Singapore in the next 12 months in response to new employment and immigration policies in the country, including the stricter employment pass (EP) requirements.

According to 65.63% of Australian MNEs, obtaining an EP has now become more difficult than previously, given the higher qualifying salary requirement (71%) and fewer successful job applications (82%).

In general, MNEs would either distribute the tasks within the organisation and

dissolve the position (59%), or bring employees from other locations or offshore it (16%) to fill in their vacancies.

In the case of an EP rejection, most MNEs shift the vacant position to another location (41%), whilst some either leave the vacancy open (32%) or hire somebody else even though the necessary skills are missing (23%).

Skills that are most sought after by companies from university students include critical thinking (78%). Australian MNEs also want applicants to possess initiative and self-motivation (69%), written and spoken English proficiency (44%), and teamwork capability (44%).

Based on the study, the most in-demand talents across Australian MNEs are software engineers, risk professionals, project planners, qualified professionals, financial analysts, economists and sales.

Plan to change the number of employees in the next 12 months

Source: AustCham Singapore

SINGAPORE BUSINESS REVIEW | Q1 2024

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FIRST BUYERS EYE HDB RESALE FLATS WITHOUT RESALE RESTRICTIONS RESIDENTIAL PROPERTY

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ore buyers are looking for HDB resale flats without resale restrictions, particularly in the Central region ahead of the implementation of new categories, Huttons revealed.

Huttons said buyers are particularly looking in the Central region because only Prime and Plus BTO flats will be sold in the area from 2H24.

"They are also willing to pay slightly more for these flats," Huttons added.

Buyers' preference for HDB flats without resale restrictions may have "supported prices in the HDB resale market and the number of million dollar flats in October," said Huttons.

"This is the first time that no million dollar flat was sold in non-mature estates," Huttons added.

According to PropNex, the 41 million-dollar HDB flats resold in October were in mature towns, particularly in Bukit Merah and Bishan (7 units each), Queenstown (6 units), Kallang Whampoa and Clementi (5 units each), Ang Mo Kio (4 units), Central Area and Toa Payoh (2 units each), and one each in Serangoon, Geylang, and Bukit Timah.

Huttons, however, said the effect of buyers preferring flats in the Central region will likely be "one-off."

"The number of million-dollar flats stands at 377 as of the end of October 2023, 2.2% higher than 2022's 369 transactions. The number of million dollar flats is likely to exceed 400 in 2023," Huittons commented.

In the coming months, Huttons believe that the HDB resale market is headed towards stabilisation.

"The increase in BTO and resale flat supply may moderate prices in HDB resale flats to around 5% in 2023. HDB resale flat transactions are estimated to be 27,000 in 2023," huttons said, PropNex shared a similar sentiment, saying the ramping up of new Build-toOrder flat supply and flats with shorter waiting times may moderate demand in the HDB resale segment.

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SINGAPORE BUSINESS REVIEW | Q1 2024

Businesses who could court "silver spenders" will see growth potential (Photo by Lily Banse on Unsplash)

'Silver spenders' spur investment opportunities HEALTHCARE

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ingapore’s ageing population creates investment opportunities in the fields of healthcare, senior care, cosmetics, travel, leisure, and long-term financial planning, according to RHB. The silver generation likewise propels the creation of brand-new goods and services that seek to enhance the standard of living for both older people and younger people making plans for their later years.

Singapore, according to the Ageing Asia Alliance, is the country with the biggest silver economy potential in terms of the capacity of the ageing population to spend or be supported by their children.

“Businesses who could court these ‘silver spenders’ with innovative solutions to match their lifestyle aspirations and healthcare goals will see strong growth potential,” said RHB. Amongst investment opportunities that have stemmed from Singapore's ageing population include telemedicine and health technology.

“The use of mobile apps, wearable technology, and smart gadgets powered by the IoT is sought to create better healthcare options for the elderly.

Therefore, there is room for businesses to create smart healthcare solutions that

There is a demand for innovative assisted living ideas that offer facilities connected with the community

can help them live longer and better lives. These solutions could address issues such as disease management and monitoring, fall detection and medication compliance,” RHB said.

Singapore also has an HDB Smart Enabled Home initiative which can be a window opportunity for businesses.

The initiative seeks to enhance daily life in HDB residences through 'Smart Living" as part of Singapore's Smart Nation Vision.

Privately managed assisted living is also an area which businesses can tap.

“More senior citizens want to age independently and respectably.

There is a demand for innovative assisted living ideas that offer facilities connected with the community and enhanced nursing home models that move away from an institutionalised style of eldercare,” RHB said.

Senior living advances In Singapore, there are private assisted living service providers like St Bernadette Lifestyle Village at Bukit Timah. The group also has two similar amenities at Adam Road and Sembawang, both also housing eight seniors each.

Renters pay about $4,600-$5,800 monthly, depending on location and room type and are looked after by trained caregivers rostered around the clock. Red Crowns Senior Living (Red Crowns) is another local care provider that started offering assisted living services in April 2021. Its operating model involves renting HDB flats and condominiums for use as assisted living facilities, and the company is currently serving 130 elderly clients in 33 homes across Singapore. Red Crowns charges $2,900-$6,300 per month for assisted living, depending on location and caregiving service.

The ageing population has also taken elderly nutrition to centre stage.

Seniors' demands can be better met by food products that have been altered in terms of flavour, texture, nutrition, and simplicity of preparation.” RHB said.

"A Singaporean start-up called SilverConnect specialises in producing moulded pureed food for persons who have trouble swallowing. In addition to staples like ready-to-eat pureed fish, veggies, and chicken, its trademarked GentleFoods menu offers regional treats such as pureed pineapple tarts and ang ku kueh,” RHB said.

FIRST

Halal industry is set to boom as more businesses comply with certification requirements

3 factors that can position SG as the market of choice for the halal industry FOOD & BEVERAGE

B

usinesses eyeing entry into the halal industry should strongly consider Singapore as their market of choice as the country is poised to become a global hub for halal, thanks in large part to the presence of Majlis Ugama Islam Singapura (MUIS) and its renowned certification scheme.

"The Singapore Halal Certification Scheme is recognized globally as it ensures that products and services meet strict halal requirements, providing consumers with confidence in the authenticity and quality of products," YCP Solidiance said.

The first competency Singapore possesses that will make it a significant export hub for halal products and services is the reputation of its halal certification.

"Majlis Ugama Islam Singapura (MUIS) conducts regular audits and inspections to ensure that businesses comply with the halal requirements, and the certification is widely accepted both within Singapore and internationally," YCP Solidiance added.

Singapore's second competency is its supportive ecosystem towards halal-related matters. YCP Solidiance said that whilst

Singapore is not a Muslim-dominated country, the MUIS takes matters on halal-related products and services "seriously".

"MUIS has played a critical role in creating a supportive ecosystem for halal matters in Singapore, providing businesses with the necessary guidance, education, and certification to meet the growing demand for halal products and services," YCP Solidiance said.

Lastly, there is an increasing awareness of halal matters amongst consumers in Singapore. "MUIS is always well-informed in halal-related matters and always relays them to the community. This increasing awareness has helped drive the growth of the halal industry in the country, providing opportunities for businesses to cater to the needs of Muslim and non-Muslim consumers alike,” YCP Solidiance said.

Halal in SG There are about 600,000 Muslims in Singapore, accounting for 13.6% of the Lion City’s population as of June 2022. In the same year, 9.0% of the total consumer spending in Singapore was on halal products and services.

In 2021, the local halal industry market was valued at US$1.1b.

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STARTUP

Dozer slashes need for big teams in data app development Data engineers can instantly build a data serving infrastructure instead of months.

INFORMATION TECHNOLOGY | by Noreen Jazul

B

uilding the data infrastructure necessary for developing applications often requires large teams and takes several months to complete.

To significantly streamline this process, Vivek Gudapuri and Matteo Pelati created Dozer.

Dozer is a data infrastructure platform that cuts the need for big data teams in data app development, as well as the time needed for such.

“Typically, to create real time data application programming interfaces (APIs), it will require a complex data build,” Gudapuri told the Singapore Business Review.

“Sometimes it takes a large team and several months of effort to actually kind of produce the basic infrastructure that is required to work on customer facing problems, we want to productise that and offer a very seamless experience. Instead of taking months, you could actually get started in days doing the same thing,” he added.

What Dozer basically does is allow data engineers to build customer facing data products “very easily,” said Gudapuri. “Instead of worrying about data infrastructure,

With a few lines of configuration, you can actually bring data from any of these sources, and immediately produce them as APIs.

Dozer co-founders Matteo Pelati (left) and Vivek Gudapuri (right)

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SINGAPORE BUSINESS REVIEW | Q1 2024

basically they can — with a little bit of configuration — produce a full infrastructure and can start working on mobile applications that could actually leverage the data API Dozer produces,” he said.

In typical data engineering scenarios, they will have data coming from transactional databases such as MySQL, from data warehouses such as Snowflake and other application sources that are available.

“What Dozer does is with a few lines of configuration, you can actually bring data from any of these sources, and immediately produce them as APIs. That means you don't need a large data engineering team that will have to create pipelines and transform the data, aggregate the data and expose them as API. That's something Dozer will immediately do for you,” he said.

According to Gudapuri, Dozer is built in low-level languages which allows for “a lot more performance.” This is also amongst Dozer’s edge compared to similar platforms in the market. Explaining the name of the startup he cofounded with Matteo Pelati, Gudapuri said “Dozer” came from the word

“bulldozer,” which also happens to be the name of a tool used by Netflix to move their data.

For businesses keen to use Dozer, the startup charges its users depending on how much time they run the platform.

“We are usage based. Business will bring up a data platform using Dozer and we basically run instances for you. We have basically a usagebased model based on the number of hours you use this particular type of instance,” he explained.

Plans The Sequoia Capital-backed startup recently raised US$3m in a seed funding round which Gudapuri described as a “pretty pleasant experience.”

“Our funding was pretty straightforward. Our funding took basically a month’s time,” he shared.

Gudapuri said he and Pelati plan to use the funds they raised to launch their cloud offering.

“We are working with multiple POCs (proof of concepts) with enterprises, banks, telcos, etcetera, but we will have a cloud selfservice offering coming up pretty soon,” he said. “We will mainly use this funding towards product development and go to market.” In the next five years, Dozer plans to position itself in key areas such as the US, India, and Southeast Asia.

“Currently, we are a team of 10 to 15 people and we are fully remote and don’t even have an office but we plan to expand. We [also plan to] expand in terms of verticals.

We will position ourselves in a few areas,” he said.

Gudapuri said telcos and banks and financial institutions usually tap Dozer “mainly because they have this problem of disparate data sources, and they have to internally create a large data platform to solve some of these problems.”

STARTUP After integrating Aampe into its marketing strategy, ZALORA recorded 13.2% incremental additional app visits, 12.8% incremental additional add-tocart events, and 6.7% incremental additional purchase events.

The early-stage tech firm so far raised $SG10.2Mm (US$7.5m) preseries A funding round led by their top investors Matrix Partners India and Peak XV Partners.

Unique and instrumented notifications engage inactive users (Photo from Aampe)

Aampe boosts app engagement with unique texts

The startup’s e-commerce client recorded a 6.7% incremental additional purchase events from consumers after generating relevant marketing messages.

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RETAIL | by Consuelo Marquez

eneric, repetitive notifications may annoy customers and make them engage less frequently, but more relevant and specific texts may help e-commerce apps gain more clicks and convert them to new purchases. These messages can be generated by Aampe, a Singapore-based startup platform developed by Paul Meinshausen.

One of the startup’s e-commerce clients recorded a significant increase in user engagement and conversions by using Aampe’s AI to identify a user’s preferences. Using this method, Aampe was able to drive over 65% of all new user purchases from just 32% of the total new user population.

Speaking to the Singapore Business Review, Meinshausen said Aampe is in the business of solving this challenge with his artificial intelligence (AI) platform, helping businesses enhance the reach of their products and services using AI that will make messaging more relevant and specific for customers.

He said their software-as-aservice platform uses AI called “reinforcement learning” that observes users’ specific preferences

It can help you find what you want and what you need much faster

Paul Meinshausen

and behaviour in the app and acts on them to drive additional engagement and conversions.

Aampe’s AI replaces conventional consumer relationship management tools that manually create messaging to engage with their customers.

Aampe uses probabilistic and dynamic AI to anonymously generate and send messages to each user and optimises the user’s likelihood to engage.

“It can help you find what you want and what you need much faster, and be very relevant for you as a person and kind of motivate and help you enjoy the app experience.

When you do that, people stick around in your app more and they make more orders,” Meinshausen told Singapore Business Review.

For example, one of Aampe’s clients, ZALORA, wanted to better engage their inactive users. ZALORA used the startup’s GPT-3 integration to generate over a hundred thousand unique and instrumented messages from lipstick to sportswear, aimed at different buyer preferences from popularity and affordability to convenience and quality.

Inspired by a physicist’s measurements Before launching Aampe in 2020, Meinshausen thought of introducing his company with a distinctive name.

He sourced the name from French physicist, Andre-MarieAmpere, who founded the science of electrodynamics. Ampere also coined the measurement for the electric current unit, ampere, which is abbreviated to amp. “[Andre-Marie-Ampere] did a particular kind of physics that introduced experimentation into physics that we thought was interesting and represented how critical experimentation is for any kind of progress,” said Meinshausen.

Thinking differently Other traditional marketing software tends to be deterministic — working in a straightforward cause-and-effect manner — rather than probabilistic, which is what Aampe offers to businesses.

“Most software is deterministic in the sense that if something happens in the software…one thing leads to another thing. In AI, it’s probabilistic,” Meinshausen said, referring to the exploration of probabilities.

“If you do this, there’s a chance of this happening. If you do this, there’s a chance of this happening. It's probabilistic,” he further explained.

Aampe replaces deterministic AI with probabilistic AI, which “specifically counterfactual contextual bandit algorithms and reinforcement learning to autonomously generate and send messages to each user to maximize the user’s likelihood to engage and convert.”

The Aampe CEO also said they think differently in solving the problem, having a team of machine learning and AI engineers, instead of other software built by marketers.

SINGAPORE BUSINESS REVIEW | Q1 2024

15

STARTUP

Lendela redefines borrowing experience to fight isolation and stigma The startup provides a platform for easy loan eligibility assessment using minimal personal data.

FINANCIAL SERVICES | by Consuelo Marquez

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hen Lendela CEO and founder Nima Karimi went to Singapore to start his firm, he was surprised that a good number of Singaporeans took a traditional stance around the concept of borrowing money.

“There's a certain stigma around lending which leads to shame and isolation when someone requires a loan. So it’s not often talked about openly and becomes this very lonely experience,” Karimi told the Singapore Business Review in a recent interview.

“We see examples of individuals applying [for loans] and not telling their spouses or parents which for me, is the obvious first step, you talk to your immediate family about a big financial decision,” Karimi added.

Recognising this gap, Karimi sought to provide a secure platform in Singapore for borrowers to transparently access eligible loans while helping credit providers match with more ideal customers.

Lendela’s matchmaking tool Applying for a loan can be tedious as there are over a hundred registered money lenders in Singapore and it will be difficult to check them all and do the research.

To resolve this, Karimi said Lendela acts like Airbnb to borrowers, whom they connect to lenders. The borrower’s journey starts with a need, such as a big life event like a home or car purchase, facilitating cash flow, or emergency funds. The borrower then applies to Lendela securely with the help of SingPass, a Singaporean’s trusted digital identity.

After this, Lendela’s matchmaking algorithm helps in comparing multiple loan offers customised to the individual’s profile for them to choose from.

Once lenders receive the profile of the borrower, Lendela ensures that the information shared is anonymised, Karimi said.

“The lenders will review your 16

SINGAPORE BUSINESS REVIEW | Q1 2024

Nima Karimi, Lendela CEO

[Borrowing] is not often talked about openly and becomes this very lonely experience

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profile and they cannot see your NRIC number or your phone number, email, or address, but they get to see enough information to give an accurate offer based on your profile,” said Karimi.

Once the borrower chooses a desired loan, only then are both the lender and customer given details for a follow-up appointment where the money will be made available, along with instructions on how to repay the loan. An interesting feature is that applying for a loan through Lendela has no impact on the borrower’s credit score. For borrowers who apply with multiple banks or lenders individually, the credit score will gradually deteriorate, punishing the consumers who want to make a proper comparison before taking up a loan.

“Lendela’s model does not affect your credit rating. Once you get the loan, only then does it get recorded on your credit”, explained Karimi.

Lendela earns a small referral fee from the lender once a loan gets disbursed, allowing Lendela to favour the customer’s best interests regardless of which loan they choose from. With its matchmaking engine, Lendela is processing tens of thousands of loan applications yearly.

APAC expansion At present, Lendela is backed by Singapore-based venture capital firm, Cocoon Capital, and so far, the fintech app has raised $5m in funding. Lendela is also in the midst of its Series A fundraising round.

Since launching in 2018, Lendela has since expanded its business in Singapore, Hong Kong, and recently, Australia. Australia has over 300 licensed lenders, many of which operate solely digitally. In Australia, Lendela connects with Australia’s credit bureau to fetch the customer’s credit report, which offers a fully digital experience for both lenders and borrowers.

Apart from the three economies, Karimi said Lendela plans to launch in other Asia-Pacific markets.

“We look at markets where there are a lot of options for the customers, but also there is a lack of transparency in quickly figuring out the best loan terms,” Karimi said.

Lendela currently focuses on the personal lending industry as this is where they see the most need, said Karimi. Despite this, Karimi said the industry still offers a variety of products such as small and mediumsized enterprise loans, car loans, mortgages, and credit cards, that the company could tap into in the future.

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17

SPACE WATCH

Carousell HQ embraces circular economy with repurposed, second-hand furnishings The company’s ‘Snorlax’ meeting room has namesake plush toys bought from a Carousell user.

RETAIL | by Noreen Jazul

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hen moving offices, companies would often get rid of their old furniture and leave it behind.

Carousell did the opposite and brought along old pieces from its past offices and repurposed them for its new headquarters at LaunchPad @ One-North.

Visitors find these repurposed furniture pieces a welcoming sight right at the entrance of the new office where a lighting fixture in the shape of Carousell’s logo icon is displayed. The logo lights are made from table legs of extra office tables that the company had from its previous offices. Making the most of these extra tables, Carousell also converted the table tops as soundproofing panels to improve acoustics during town hall meetings and events. “We love repurposing old pieces to give them new life. If we have furniture we no

longer need, we don't just toss it out. We make sure it finds a new home, either through Carousell or by sharing it with our startup community friends,” Vishal Salunkhe, vice president and regional head of Goods at Carousell, told the Singapore Business Review.

Vishal Salunkhe

Second-hand furniture Apart from repurposed pieces, Carousell also furnished its headquarters called Carousell Campus, with second-hand items. Inside one of the meeting rooms called the “Snorlax” room are life-sized plush toys of the Pokemon character which Carousell actually bought from one of its users.

“Our meeting rooms are named after key moments in our history and some heartwarming user stories,"

2

1

Luxury 1 Carousell's Showroom allows users to try high-value secondhand items in person before making a purchase.

2 Salunkhe's favourite, the "Library" meeting room, features a secret entrance and cosy lounge with amenities.

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4

3 Repurposed furniture greets visitors at the office entrance, highlighted by a Carousell logo-shaped lighting fixture.

Secondhand 4 The Impact Wall symbolises Carousell's commitment to fostering collective impact through promoting secondhand choices.

5

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Front of House's 5 The Y-shaped table arrangement facilitates group discussions and encourages collaboration.

'Snorlax' 6 The meeting room features life-sized Pokemon plushies acquired from a Carousell user.

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SINGAPORE BUSINESS REVIEW | Q1 2024

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STRATEGY IN ACTION SINGAPORE BUSINESS REVIEW | Q1 2024

19

PROPERTY WATCH

Accor’s Hotel Faber Park SG offers unique experience for culture-seeking travellers Singapore’s first Handwritten Collection hotel was inspired by the iconic Mount Faber.

COMMERCIAL PROPERTY | by Noreen Jazul

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ntil recently, tourists had to journey for miles or take a cable car to catch a glimpse of Mount Faber, but with the launch of Accor’s first Handwritten Collection hotel in Singapore, guests can now immerse themselves in the beauty and history of Singapore’s second-highest hill and premier attraction, all from the comfort of their hotel room.

Not only is Hotel Faber Park Singapore – Handwritten Collection nestled by the iconic hill, it also tells the story of Captain Charles Edward Faber of Madras Engineers, who built a narrow winding road to the summit for the installation of a signal station.

The design and layout of the rooms and amenities such as the restaurant were also inspired by the foothills of Mount Faber Park, giving guests a piece of Singapore’s history.

Highlighting passion Andrew Langdon, Chief Development Officer of Accor Asia, said hotels under the Handwritten Collection brand each follow a unique theme and story, which is often linked to the owner of the hotel.

“Hotels under the Handwritten Collection portfolio are highly curated and have a unique identity and personality. The idea is we infuse existing hotels with a story typically linked with the owner’s passion, giving

The idea is we infuse existing hotels with a story typically linked with the owner’s passion, giving guests unique experiences

guests unique experiences,” Langdon told the Singapore Business Review.

“No two Handwritten Collections will look the same. They are meant to be different, independently-inspired hotels,” Langdon added.

Further comparing the Handwritten Collection with Accor’s brands that have already entered the Singapore market, Like Ibis, Pullman, and Novotel, Langdon said the former is a soft brand, whilst the latter are hard brands.

“Handwritten Collection hotels are typically named Hotel ABC — A Handwritten Collection. For our hard brands, hotels are named after the brand, for example, Pullman Orchard,” Langdon explained.

Unique, authentic experiences Since Handwritten Collection hotels are independently-inspired, it also allows Accor to offer their guests unique and authentic experiences, which are what travellers are seeking nowadays. According to Booking. com’s 2023 Sustainable Travel Research Report, 75% of travellers seek authentic experiences that are representative of the local culture.

“We have seen how our guests’ attitudes have changed, visitors and guests of our hotels are now looking for actual, authentic, culturally-

Rendering of reception and social hub, Hotel Faber Park Singapore - Handwritten Collection

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SINGAPORE BUSINESS REVIEW | Q1 2024

sensitive, culturally-aware stay,” Langdon said.

“The Handwritten Collection hotels will very much cater to those guests who are looking for something different, something unique, something that is potentially off the beaten path,” he added.

The 194-room Hotel Faber Park Singapore - Handwritten Collection, for example, offers guests access to Sentosa Island, VivoCity, Singapore Cable Car, and surrounding reserves, with the MRT line located within walking distance of the hotel.

More hotels in Singapore Apart from the introduction of the Handwritten Collection, Accor also opened new hotels in Singapore including the 543-room Novotel on Kitchener Road and the Pullman Singapore Hill Street.

As of writing, the number of hotels under the Premium, Midscale, Economy segment run by Accor in Singapore totals 28. Of the 28, one is a Handwritten Collection hotel, one is under its Swissôtel brand, two under Pullman, one under Grand Mercure, twounder Novotel, one under Novotel Living, three under Mercure, two under ibis, another two under ibis Styles, and 14 under the ibis Budget brand.

“We are currently working on a couple of other opportunities which we plan to announce in 2024,” shared Langdon. Besides Singapore, Accor also plans to further expand in countries within the Asian region.

“We are targeting to sign 60 hotels and 15,000 keys throughout our brands and throughout the 14 countries in Asia this year,” Langdon said. “We want our brands in all of the destinations that our guests expect to go and visit.”

Langdon also underscored that inter-Asian travel is “very strong” and he expects it to grow at a far greater pace.

SINGAPORE BUSINESS REVIEW | Q1 2024

21

LEGAL BRIEFING

DPT service providers face higher costs under MAS’ investor protection measures MAS has required all providers to hold customers’ money and assets in a trust.

FINANCIAL SERVICES | by Noreen Jazul

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earning from the collapse of digital payment token (DPT) service providers FTX and Genesis which left thousands of investors in limbo, the Monetary Authority of Singapore (MAS) has mandated providers to put their customers’ money and assets in a trust.

Since the new measures imposed by MAS “have moved closer to capital service market requirements,” Wai Ming Yap, partner at Morgan Lewis, said DPT service providers will likely incur greater compliance costs.

“DPT service providers will need to adapt to the new requirements quickly and may have to restructure parts of their business processes and operations in order to comply,” added Yap. Samuel Lim, partner at Rajah and Tann’s Financial Institutions Group, shared a similar sentiment, adding that the new requirements could lead to increased compliance costs for the DPT service providers.

However, Lim noted that the new requirements will benefit the industry as a whole as DPT service providers in Singapore will have “increased credibility” from being supervised under a regulatory framework for customer protection.

According to Yap, the MAS mandate offers “greater investor protection” to retail customers. “These measures mitigate the risk of loss of money and assets not only in the ordinary course of business and also in the event of a DPT service provider’s insolvency,” he said.

“Customers will also benefit from the enhanced disclosure requirements which will offer greater transparency and risk disclosures to customers and allow them to make informed investment and trading decisions,” he added.

Overall, the mandate will benefit the entire cryptocurrency industry, with Wai believing it would stabilise the market and eventually “improve the quality of Singapore’s digital asset space.”

Yap also believes that the regulatory measures will translate into “greater trust and confidence” in the DPT market, which will in turn, allay investor concerns and lead to increased demand from customers.

Trust When the measure comes into force in October 2023, all DPT service providers will be required to segregate their customers’ monies and assets into a trust. Previously, safeguarding obligations only applied to major payment institutions.

“Customers’ monies held by DPT service providers will now need to be safeguarded with financial institutions in Singapore. Under the proposed new regulations, a safeguarding institution refers to the person that the custody account is maintained with, and safeguarding institution is defined as including a bank or any other financial institution in Singapore,” Yap explained.

“MAS has stated that, for the time being, it will not mandate the use of independent custodians for customers’ assets as there are only a limited number of independent third-party custodians in Singapore currently. A licensed DPT service

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SINGAPORE BUSINESS REVIEW | Q1 2024

(Left) Wai Ming Yap, partner at Morgan Lewis (Right) Samuel Lim, partner at Rajah and Tann's Financial Institutions Group

SCAN FOR FULL STORY

provider is permitted to maintain the custody account itself, provided it ensures operational independence of its custody function from other business units,” Yap added.

Under the measure providers are required to maintain “a separate custody function that is operationally independent from other business units to mitigate the risk of internal fraud and misappropriation of customer assets.”

“Where an external service provider is engaged to support the custody of customers’ assets, DPT service providers should disclose the safeguarding arrangements, terms and conditions and attendance risks to its customers, and ensure that the external service provider has controls in place to reduce the risk of loss of assets due to fraud or negligence,” Yap added.

To further safeguard the assets of customers, movement of these assets must be controlled by the provider’s senior managers and personnel who reside in Singapore.

“These senior managers and personnel should be authorised to facilitate the return of customers’ assets where required by MAS or in court proceedings,” added Yap. In terms of storage, Yap said the measure provides that at least 90% of customers’ DPTs must be kept in cold wallets, whilst allowing up to 10% to be kept in other wallets like hot wallets. “[Providers should] conduct periodic reviews to consider if this percentage should be increased,” Yap added.

Apart from the segregation, MAS is also requiring DPT providers to perform daily reconciliation of their customers’ assets, including monies, at the entity level.

“They are also required to keep transaction records and maintain separate books and records for each customer with details of the customers’ assets at all times,” Yap said.

The regulatory requirements imposed by MAS also covers DPT service providers operating outside of Singapore but providing regulated payment services, including DPT services, to persons in Singapore.

SINGAPORE BUSINESS REVIEW | Q1 2024

23

HR BRIEFING

Pay transparency trend relies on the labour market’s future If the labour market softens, firms can decide whether or not to openly disclose salaries.

HR & EDUCATION | by Consuelo Marquez

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he question of advertising the salary range is an ageold one, though recent job listings reflect a growing support for it due to fierce job competition. While Singapore has no legislation requiring disclosures, experts question if firms will continue openly revealing the salary when the recruitment races have died down. “[Softening labour market] will determine whether this recent trend towards greater pay transparency is going to persist or whether it is a temporary trend that has emerged due to the unique circumstances of the pandemic and its recovery,” Callum Pickering, Indeed's APAC senior lead economist, told the Singapore Business Review.

Shermaine See, a principal consultant at life sciences specialist recruiter EPM Scientific, said pay transparency will likely increase slowly for the life sciences jobs market due to fairness and diversity.

Especially when niche talents show up, companies are more likely to release pay information since talent that fits these posts is harder to find. An example of rare talent is a scientist with mRNA experience.

Job hunting portal Indeed’s 2023 study showed that pay transparency is 1.8 times higher in March 2023 compared with the same period in 2019. More than 40% of all job postings in administration, sales, and marketing revealed their salary.

“All of those sectors have faced some pretty widespread skill and talent shortages and employers have had to respond by changing their approach to recruitment,” said Pickering.

Salary benchmarking Another approach to pay transparency is salary benchmarking, which provides data on what competitive firms pay their employees in similar positions.

Tricia Tan, human resources director for Southeast Asia and Greater China at Robert Walters, said this practice, which is done annually, helps show salary adjustments due to inflation. For example, industries like financial services and consulting firms, produce salary benchmarks, said Tan. These industries provide fixed pay for entry-level graduates.

“Generally, banks tend to be quite competitive with each other. If we talk about the smaller financial service houses, they can sometimes compete as well,” Tan told the Singapore Business Review.

Full of secrets The recent Indeed study also showed that pay transparency is not as high in the field of engineering and tech. About 10% to 20% of occupations in these industries have pay information, a lower increase compared to other sectors in the Singapore economy.

In life sciences, See said, some engineering roles have hidden salary ranges because they will need to screen applicants on experience, educational background, and other achievements. Pickering said refusing to release pay information could give the employer more power over the 24

SINGAPORE BUSINESS REVIEW | Q1 2024

Callum Pickering

Shermaine See

Tricia Tan

job applicant, which can allow the recruiter to be more flexible with what they end up offering.

“That often involves lowballing the potential candidate and that possibly happens a lot in the recruitment process,” said Pickering.

In life sciences, disclosing salary data to employees may also depend on their type of job. For example, those employed in commercial jobs could have a commission structure involved while those in clinical jobs only have compensation packages such as base borders and allowance.

An EPM Scientific study revealed that two-thirds of commercial professionals in the life sciences industry said their base salary was between $67,000 and $20,000, with a quarter between $100,000 and $134,000. Most respondents received commission but for the relative majority, it falls below 5% of their base salary and does not contribute significantly to earnings.

The clinical development professionals’ average pay is the highest in the study but starting salaries were lower. A tenth said they earned between $34,000 and $67,000. Most clinical development professionals earned over $134,000, but the largest proportion (23%) earned between $111,000 and $134,000.

Pay transparency law Experts have no definite answer whether the pay transparency law should be taken to Singapore. France, Germany, Spain, the UK, and some US states have salary disclosure laws to bridge the gender pay gap and boost employee productivity in companies.

Whilst pay transparency is progressive, Tan said implementing a law could “upset the balance” amongst companies.

“It might cause a ripple effect, where small to midsize firms might also struggle to keep up in the race to be competitive against the market. They can’t compete with the bigger firms so they might lose out in the talent war as well,” said Tan.

Pay transparency aids in salary benchmarking and in recruiting for niche positions (Photo from Freepik)

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SINGAPORE BUSINESS REVIEW | Q1 2024

25

MARKETING BRIEFING

How brands can avoid inauthentic throwback marketing

Analysts flag common errors in using nostalgia marketing and cite brand campaigns that are winning hearts.

RETAIL | by Consuelo Marquez

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ingapore retailers should capture consumers with authentic marketing techniques instead of evoking consumers’ feelings with false retro strategies, experts from Global Data and KPMG Singapore say. They cite the McDonald's Singapore Prosperity Burger, which coincides with celebrations for the Lunar New Year, as a good example of successful throwback marketing.

To correctly implement throwback marketing, GlobalData principal analyst Richard Parker advised brands to form emotional connections, leverage past symbolism, and prioritise optimism and positivity as consumers face geopolitical tensions, persistent inflation, and fears of economic recession.

“You’re trying to leverage the vibe without the heritage.

The risk is if you’re doing that, what I’m terming as nostalgic appropriation, it’s almost like nostalgic marketing becomes a bit like greenwashing,” said Parker in an interview with the Singapore Business Review.

“It’s in a similar ballpark, of using something in an inauthentic way,” Parker added.

Capturing connections Taking a leaf out of McDonald’s playbook with its Prosperity Burger, effective nostalgia marketing comes to life, perfectly timed with a Chinese New Year-related campaign aimed at offering Singaporeans a “taste of home.” “[The campaign] depiction was of a young woman living abroad, and sort of lonely holiday season and then connecting with her family online to have a shared prosperity burger meal. It’s not necessarily connected to sort of nostalgia for a previous time, but it's nostalgia for a positive family event,” said Parker.

One way to connect with the brand’s audience, he said, is to leverage social media where people can talk about their nostalgic narrative. For example, in 2015, #GrowingUpSingaporean began trending as people shared their childhood memories. This will allow brands and marketers to lay the groundwork for their strategy in a local area or region.

In a Boston Consulting Group study, APAC brands can leverage Shoppertainment and mix it with nostalgia storytelling. The study advised not to force decision-making by using stories that bring back good times.

Aside from the Prosperity Burger, another brand that used nostalgia marketing is MAMEE-Double Decker which launched in March a limited-edition line of their classic noodle snack, with a packaging label featuring its classic blue mascot in the 1970s, said Bobby Verghese, consumer analyst at GlobalData.

“Infusing vintage elements of yesteryear pop culture, historical, or social references into contemporary product and packaging formats allows companies to subtly hint at their longevity and heritage, without diluting their modern and trendy image,” Verghese said.

Guillaume Sachet, partner for advisory at KPMG 26

SINGAPORE BUSINESS REVIEW | Q1 2024

The Prosperity Burger campaign is a good example of nostalgia marketing (Photo from McDonald's Singapore)

Singapore, said a common form of nostalgic marketing is using old packaging, putting memorable logos or using a famous song from a classic movie in their advertising campaigns. “Regardless of the approach or tactics that brands take, they will do well if they can keep the emotional hook fresh, and remain authentic, timely and relevant,” he said.

An example of this is Coca-Cola’s “Share a Coke” campaign, where common names on Coke bottles were printed. This campaign resonated with consumers because of personal connections and shared experiences. The campaign generated a 2% increase in US sales.

Richard Parker

Bobby Verghese

Guillaume Sachet

Reviving old but good Another form is bringing an old product back but making it better, more contemporary and improving its qualities, features, and benefits, said Parker.

He cited an example of the Nokia 3310, which was an emblematic phone in the ’90s. In the last few years, Nokia brought out a new version of it and the key marketing message was “Remember this in the 90s? Feel old yet?

Future of throwback marketing Parker said throwback marketing will be effective in the future as humans tend to idealise the past and search for comfort in memories.

“It will continue to be a powerful marketing tool. What will change will be the reference point, sort of chronologically for such a kind of nostalgia that will continue to progress with the generations,” said Parker.

He also explained that as Generation Z starts to have a decisive impact, they will turn to the ’80s and ’90s culture for brands but they will also be possibly in terms of the 2000s as their “childhood emotional linchpin.”

In Singapore, Sachet said the fast pace of change may bring stressors to its residents which is why nostalgia marketing will provide an escape from tensions in the current situations to relive warm comforts of the past and a simpler life.

SINGAPORE BUSINESS REVIEW | Q1 2024

27

CEO INTERVIEW

ZALORA seizes opportunity in revenge tourists’ purchasing power

The e-commerce platform added more travel-related items catering to the rise in travel searches from customers.

SINGAPORE | by Consuelo Marquez

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evenge tourism can spell negative outcomes for online commerce platforms like ZALORA, which relies on native population customers rather than tourists who tend to buy in-store in their new destination.

However, with the increase in travel-related searches, ZALORA found that tourist demand for travel preparation increased with luggage and winterwear.

With this, over the last few months, ZALORA added more travel-related products to meet their customers’ increasing demand. These include travel bags, hard case luggage, and passport holders, from popular brands such as Bellroy, Jansport, Tumi, CROSSING, Thule, and THE 815 CO. “People getting ready for travel is the opportunity for us in e-commerce. That’s why we also created curations… to support the travel economy that’s happening around us,” ZALORA CEO Gunjan Soni told Singapore Business Review in a recent interview.

The search for travel-related items such as sunscreen and swimwear grew year-on-year by 31 times and up to 19 times from 2020 to 2021 alone, data from ZALORA said.

From 2022 to 2023, revenge travel seems to be going strong, with travel-related searches on luggage, winter coats, and gloves continuing to increase by around 18% year-to-date.

A study from KPMG showed that retailers can tap Gen Zs who are adapting to consumer trends such as revenge spending and traveling. There are about 600 million Gen Zs who find appeal in retailer offerings.

Singaporeans embracing subscription ZALORA evolved from the online shopping strategy of solely offering discounts and good deals to creating ZALORA VIP, a one-year subscription service that offers exclusive rewards for consumers who have availed of the membership.

Soni said Singaporeans want convenience aside from good deals, which is why their subscription service offers next-day and unlimited free shipping with no minimum spending.

According to its website, Singaporeans can avail themselves of ZALORA VIP at S$17.90 yearly or S$1.49 per month.

Shoppers can also get a full rebate, vouchers, and other exclusive rewards.

The subscription service generated 20% of the net merchandise value (NMV) from subscribers of Zalora VIP. Sustainability curation Aside from revenge travel, Soni said they created an Earth Edit, a sustainable filter in ZALORA products, which caters to eco-conscious consumers, such as Generation Z. “The fashion industry traditionally is not proud of this, but we are one of the high consumers of carbon credits,” Soni said.

“Therefore, I’m seeing this trend as a positive, and we are seeing some of our early efforts, finally starting to see consumer traction,” she added.

Earth Edit provides information on the carbon footprint: if it is made with fair production, if the product is pre-loved, and 28

SINGAPORE BUSINESS REVIEW | Q1 2024

Gunjan Soni, ZALORA CEO

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That’s why we also created curations: to support the travel economy that’s happening around us

if it is animal- and environment-friendly.

Overall, this sustainability curation helped ZALORA record sales of products made from sustainable materials or via eco-production to 14% of NMV. What’s more, 21% of ZALORA’s brand products were made from environmentally lower-impact materials, up 9% in 2022. Over 1.2 million parcels were delivered by low carbon emissions methods.

“Clearly, Singapore is leading that adoption, so I’m very happy to see that, that both Singapore and also Hong Kong, see good traction on it,” said Soni.

Transforming e-commerce search As early adopters of new technology, ZALORA boasts of using an umbrella system, Titan, which allows the e-commerce platform to collaborate with external generative artificial intelligence (AI) tools, which creates a unique experience for customers.

Specifically, Soni pointed out that finding a good shopping assistant will be difficult for companies to look for, but she believes that AI can help reshape consumer search patterns.

She said a few puzzles solved for instance are: “What were the past purchases that are working and how can I guide my consumer to make better recommendations?”

SINGAPORE BUSINESS REVIEW | Q1 2024

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CEO INTERVIEW

Indonesian challenger Fore Coffee brings its sustainability ethos to Singapore The brand uses recycled materials to furnish each of its 150 coffee shops.

FOOD & BEVERAGE | by Djan Magbanua

I

n Singapore, where coffee culture is as rich and diverse as its population, an Indonesian brand Fore Coffee is daring to challenge the established giants like Starbucks and Coffee Bean & Tea Leaf.

Vico Lomar, CEO and co-founder of Fore Coffee, sees Singapore not just as a business opportunity, but as a proving ground for his first international foray outside Indonesia. He attributes this choice to the city-state's role as Asia's central business hub and its residents' deep-seated coffee affinity.

When Singapore Business Review spoke to Vico, he shared the fact that Singaporeans on average consume around six to seven cups of coffee per week. Talking more about the numbers, he said that Singapore’s coffee market is projected to grow at a compound annual growth rate of 5%, reaching $1.2b by 2027.

Established in 2018, Fore’s company name was derived from the word “forest” to connote bringing life and goodness to its surroundings.

Edge over more established brands Vico said Fore Coffee’s main edge over popular coffee brands like Starbucks and Coffee Bean & Tea Leaf is the business model that is designed to be sustainability-focused.

For example, Fore Coffee maintains its philosophy of a sustainable coffee lifestyle by using recycled materials in each of its coffee shops. These are found in tables, chairs, decorations, merchandise, and even trash bins.

“This commitment has also successfully decreased 77.13% plastic bags usage from 2022 to 2023. And by that, our incredible journey was captured and transformed into a display installation, designed to educate, and inform about the sustainability efforts we have done yet so far,” Vico said.

Fore Coffee has started to hone its edge in Indonesia the fourth largest coffee producer and exporter in the world. A report by Statista said that in 2022, cafes and bars in Indonesia generated a sales value of $1.9b and is expected to grow to $3.6b by 2026.

“Competition is fierce in Indonesia. However, customers have also started to make more sustainable choices which have influenced their consumption. It’s not just about good quality coffee anymore but they also want value embedded in their products,” Vico said.

Competing in Singapore Vico said one of the main reasons they chose Singapore for their first international expansion is because they consider Singapore as the central business district of Southeast Asia.

“We want to bring what Fore Coffee is… to Singapore,” said Vico. “We want to bring the Indonesian coffee culture to the Singaporeans. That’s why the locations we are targeting are where most Singaporeans frequent. We are entering the market to target Indonesian consumers but 30

SINGAPORE BUSINESS REVIEW | Q1 2024

It’s not just about good quality coffee anymore, but [customers] also want value embedded in their products

Singaporeans.” For its Singapore expansion, Fore Coffee plans to utilise 100% Indonesian coffee beans sourced from Aceh, Toraja, and West Java.

Aside from usual coffee brews, the brand will also bring three of its signature drinks to Singapore: the Gula Aren Latte, Pandan Latte, and the Butterscotch Sea-Salt Latte.

“If you are asking how we are going to compete in Singapore, it’s by being us — by being Fore Coffee,” Vico said.

Currently, there is no rush to open hundreds of coffee shops in Southeast Asia as Vico said they are still trying to see where they could adjust and adapt Fore Coffee’s business model for more international locations.

“Compared to one of our competitors who has over 600 coffee shops or other two brands who have over 1,000 cafes in Indonesia, Fore Coffee is still just a teenager. We are still a developing brand. There are still a lot of opportunities not just in our home market but Singapore as well,” Vico said.

Vico Lomar, CEO and co-founder, Fore Coffee

Fore Coffee's cafe made with 450 kgs of recycled plastic (Photo from Fore Coffee)

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SINGAPORE BUSINESS REVIEW | Q1 2024

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INTERVIEW

Lylo elevates short term car rental services with care packages, delivery option The company assures that renting a car in Singapore comes with convenience and peace of mind.

TRANSPORT & LOGISTICS | by Noreen Jazul

P

ublic transportation, no matter how convenient, may not be the most practical option for those travelling in a group or with elderly, children, and pets. Ridehailing, on the other hand, may be too costly. To respond to the needs of customers whose top priority is convenience and practicality, Lylo introduced its short-term car rental service in Singapore, LyloDrive.

By renting a car through Lylo, customers will also have the option to include child booster seats, as well as have the car delivered to the client’s exact location.

Care packages In an interview with Singapore Business Review, Marcus Low, head of business at Lylo, said they also offer “car-care packs” to elevate its customers’ overall car rental experience. “These care packs include handy gadgets and essentials such as a car charger, charging cables, air freshener and more.”

Including care packs is also one of Lylo’s ways to cater to the demands of millennial and Gen Z customers. A study by Nanyang Technological University showed that it is this market segment that drives the car-sharing boom in Singapore. Low said millennials and Gen Z consumers like “immediate gratification” and allowing them to select add-ons and offering a shortened process of renting a car captures this trend.

He said putting the entire customer journey online has helped the company capture the gratification point because customers can basically shop, book, and sort their details online before they collect the vehicle they rented.

“Leasing is a very traditional industry. In the past, you had to basically head down to the venue, rent a car with a bunch of forms, and pick up the car from there,” Low said.

“What we are trying to do is make the experience almost like an e-commerce purchase and reduce the waiting time when they need to come and collect the actual vehicle,” he added, noting that for an additional fee of $40, the rented car would be delivered to one’s location.

To further optimise the journey of all its internal and external stakeholders, Low said Lylo has been constantly looking into the latest technologies from both a hardware and software perspective.

“We have invested heavily in our own in-house technology team with a view of developing our own platform as a one-stop shop for short term rental and pre-scheduled B2B transportation concierge services,” Low said.

“For our concierge services, we ensure that our drivers are well-trained and experienced, guaranteeing a secure and pleasant journey. Additionally, we offer facilities like child booster seats for those who may require them. Our end goal is to provide consumers with peace of mind when they ride with us,” he added.

Sustainable fleet Those planning to rent a car from Lylo can choose fiveseaters, seven-seaters, or prestige cars like a Mercedes Benz.

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SINGAPORE BUSINESS REVIEW | Q1 2024

Contract signing for car rental (Photo from Lylo)

Lylo's concierge service (Photo from Lylo)

[We] make the experience almost like an e-commerce purchase and reduce the waiting time when they need to come and collect the actual vehicle

The price of renting a car from Lylo starts at $110/day for five-seater cars, $140/day for seven-seater cars, and $260 for prestige cars. When on sale, rent can begin from $88/day for five-seater cars, and $110/day for seven-seater cars.

For environmentally conscious customers, Lylo has fully electric cars by BYD that can be rented. Rent for electric cars starts at $140/day.

Ninety-nine percent (99%) of Lylo’s vehicle fleet also comprises of hybrid vehicles to align with Singapore’s “direction of working towards a sustainable mobility future.”

“Consumers are increasingly conscious of their environmental impact, and prefer transportation methods that contribute to long-term sustainability. This trend is evident in the practices of leading car manufacturers, who are now using eco-friendly energy sources like solar and hydrogen energy to achieve carbon neutrality in its production processes,” Low said.

“Likewise, Singapore stands strong in supporting sustainable mobility, evident in its efforts to promote electric vehicles. With incentives such as EV Early Adoption Incentive (EEAI) being implemented, it further encourages individuals to switch to electric vehicles, moving a step towards an increasingly sustainable future. In the realm of public transportation, it is evident that Singapore is dedicated to a sustainable mobility future, with plans of replacing half of its current pool of diesel-powered public buses with fully electric buses by 2030,” Low said.

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SINGAPORE BUSINESS REVIEW | Q1 2024

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CEO INTERVIEW

Trust Bank sets the bar for digital banking in the Asia Pacific region After just one year in operation, it has enlisted 12% of Singapore's total population as customers.

FINANCIAL SERVICES | by Frances Gagua

O

ne year after being launched, Singapore’s Trust Bank has already declared a very ambitious plan: become city's fourth largest retail bank in the country.

It may seem like a tall order, but in just 12 months, the digital bank — the brainchild of global banking giant Standard Chartered and Singapore supermarket chain Fairprice Group — has made great strides that other digital banks across Asia Pacific are struggling to replicate.

In its first anniversary in September 2023, the bank listed 600,000 customers. That’s easily 12% of the total population of Singapore. These metrics make Trust the “world’s fastest growing digital bank by market share,” Dwaipayan Sadhu, CEO of Trust Bank, told Singapore Business Review. in an exclusive interview. Two things are key to this: its ecosystem and its real-time feedback.

“Today, over 70% of our clients join us as reference from another client. So, you can see how strong our word-ofmouth referral has been,” Sadhu told attendees at the recent ABF Summit held in Singapore, where he delivered a lecture.

Singapore Trust’s response to customer feedback is another key area that Sadhu was proud of. “Every nine days, we have a new app update going out. That’s twice as fast as in the market,” Sadhu said. “In about 90 days, we have delivered over 700 product enhancements.”

Singapore Business Review spoke with Sadhu to learn more about how Singapore Trust Bank succeeded in a highly-banked market like Singapore, and what lessons they learned over the past year.

How has your past year’s operation shaped your views about Singapore’s digital banking landscape?

Clearly, what we have seen is that Singapore customers are very willing to adopt a new bank if we offer them real value and a great experience.

Early in our journey, we had heard that Singapore supposedly may not need a digital bank. Some naysayers said that there are already many digital banking apps, so do we really need a digital bank? But what we’ve seen since is that over 600,000 customers have joined Trust. That’s over 12% of the Singapore market. What’s made the difference for us is the extensive FairPrice consumer ecosystem which we are integrated with, as well as the personalised and real-time experience that we have brought to the market.

How does your approach to transparency differ from the rest in the market?

We differentiate ourselves by being very transparent with our customers. For example, everything in our app happens in real time and it’s always transparent to our customers.

We have specific conditions that customers have to meet in order to receive their bonus rewards or interest. Now, there are similar products which exist in the market, but customers have to do multiple things in order to get their bonuses or rewards. What we’ve seen is that it’s always the customer’s responsibility to keep track of their progress — banks don’t

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SINGAPORE BUSINESS REVIEW | Q1 2024

Dwaipayan Sadhu, CEO of Trust Bank

Every nine days, we have a new app update going out. That’s twice as fast as in the market

make it easy for them. Customers sometimes even have to keep spreadsheets in order to keep track of them!

At Trust, our updates are in real time so you can track how you’re progressing in the app and what you need to do in order to maximise your rewards. This makes the experience not just transparent but also very easy for our customers.

What did Trust Bank do to earn the confidence of the 600,000 customers it gained the past year?

Trust has differentiated itself in many ways. First and foremost, we are integrated into the extensive FairPrice consumer ecosystem which delivers more than 1 million customer experiences nationwide each day.

Secondly, Trust is built using the latest and best technology which allows us to deliver personalised and real-time experiences to our customers. Lastly, Trust has truly innovated to bring market-first propositions to its customers, even creating new experiences for existing products. We believe that all these have made a huge difference to the everyday lives of our customers.

SCAN FOR FULL STORY

How does Trust put innovation at the forefront of its services?

Since Day 1, Trust has focused on innovation. We introduced the first card in Asia which can be used as both a credit and debit card. Applying for travel insurance or activating a blocked just takes a few taps in the app.

So, you can see that every step or product that we create is with the customer in mind and we try to do it differently.

We consider the client journey and we try to see how we can make it simpler.

SINGAPORE BUSINESS REVIEW | Q1 2024

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CEO INTERVIEW

How NETS is helping SMEs get the right data to raise their revenue NETS has a network of about 10 million cards and 130,000 payment touchpoints in Singapore.

FINANCIAL SERVICES | by Frances Gagua

A

fter facing over three-decades worth of changes and advancements in the payments industry, Singapore-based payment network company NETS’ goal remains clear: connecting communities and empowering lives.

“Our key question is always, how can we do good? How can we leverage technology, leverage our understanding of the business that we do?” Lawrence Chan, CEO of Network for Electronic Transfers (Singapore) Pte Ltd. or NETS, told Singapore Business Review. in an exclusive interview.

Catching up with Chan at the Singapore Fintech Festival 2023 last 15-17 November, it had to be asked how NETS was going about helping small and medium enterprises (SMEs) in Singapore increase their revenue.

Putting it simply, he said that they give SMEs access to the right data. To do this, NETS is leveraging its network of 130,000 payment touchpoints and about 10 million cards in Singapore.

“We may not know them by name but from where they spend, we know that they are millennials. We will know that you own a car, because you may not use your NETS card to pump petrol, but you will use it to pay for changing the tire and repairing the car engine,” Chan said as an example to how the profiles work. “We know the customer profile, [and] by knowing the customer profiles, we can help our merchants know who shopped with them. And we can actually then compare, not by exact name but against the industry, whether they are weak or they’re strong in certain customer segments,” he explained.

Lawrence Chan, CEO of Network for Electronic Transfers (NETS)

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We know the customer profile, [and] by knowing the customer profiles, we can help our merchants know who shopped with them

What are the current payments and technology needs of small businesses in Singapore?

For the first question, I’ll cite the Singapore Business Federation survey that was done recently as a reference. Their survey shows that revenue increase and cost declines are the top two needs of SMEs in Singapore. Digitalisation of the business actually comes at the lowest in that research survey.

This points to one fact: you don’t do digitalisation for digitalisation’s sake. You do it to impact the business. Revenue and costs are key. That hasn’t changed over the years right now. Now, with more digital assets available, the core needs to be sustainable as a business to make money, increase revenue, reduce costs, is still a very core need for SMEs in Singapore.

Over the past year, what are the latest tech solutions NETS has rolled out?

One of the latest things we have done is we really tried to understand — with the scale that we have in Singapore — how we can make an impact on our merchants; how we can help them. Going back to the survey that I mentioned, in terms of increasing revenue and reducing costs, let me focus on revenue first.

We have the privilege of being very dominant in the faceto-face merchant space. For most face to face merchants, the biggest challenge from a revenue growth standpoint is they actually do not know who their buyers are. [For example], a small merchant sells 100 bottles of drinks a day, maybe they can remember all 100 names. But if I’m bigger, say I have two or three locations, it is very difficult for a merchant to really know who their customers are. You’ll have to ask customers to download and register [an app], and most customers will not want to do that.

Understanding the merchants is understanding that their customers are a very big part of increasing their revenue. If you do not know who your customers are [and] who you’re serving, how do you then meet their needs?

NETS may not know each person individually like where he lives, where he stays, and what exactly he buys; but we know the customer profile. By knowing the customer profiles, we can help our merchants know who shopped with them. And we can actually then compare, not by exact name but against the industry, whether they are weak or they’re strong in certain customer segments.

Understanding who the buyers are is a key part that we can help our merchants in, not by giving them individual names, email address, no, but by the customer profile of who is buying from them. How do they compare against the competition, the industry?

In your view, what will the future of payments look like?

Okay, do you have a crystal ball? (Laughs) I believe that the future is now — and with that, we can predict what it will be like as well.

INTERVIEW

How OCBC’s blockchain expertise is powering Singapore’s digital currency ambitions The bank is one of the institutions chosen to pilot wholesale CBDC use in 2024. income product, and we hope to commercialize it next year.

We also hope to do some level of commercialization for the cross border, cross currency FX payment.”

Interoperability Perhaps one of the precursor technologies to build up to OCBC’s role in helping develop Singapore’s upcoming wholesale CBDCs is its exploration of cross-currency, crossborder FX payments. This was not just built on blockchain, but solved one of the biggest issues in blockchain technology right now: interoperability.

Kumar shared the use case developed between OCBC in Singapore and BNY Mellon from the USA. Each financial institution had their own private blockchain, one in Singapore and the other in the USA, which they tested to demonstrate the interoperability of the two blockchains.

“We did a trade, an FX payment, where the two blockchains could “talk” to each other and do an exchange of the money in a transparent, immutable manner. This is one of the biggest problems of blockchain: there are various blockchains, and they don't “talk” to each other, they are not interoperable today. We wanted to test whether we can interoperate,” Kumar shared.

To enable this, OCBC’s platform engineers built from the ground up. Now, the bank has its own in-house infrastructure that supports interoperability of blockchain.

Ravindra Kumar, managing director of Group Technology Architecture at OCBC

FINANCIAL SERVICES | by Frances Gagua

C

onference-goers who visited OCBC's booth display during the Singapore Fintech Festival 2023 were in for a treat: they were the first to get a taste of how the Monetary Authority of Singapore (MAS)’ central bank digital currencies (CBDCs) will be used. Visitors were able to avail of 5 Singapore digital dollars from OCBC, which they were then able to redeem at the UOB booth.

Whilst such digital novelties may seem routine to a country where almost 1 in 2 payment transactions are done electronically, the real magic lies behind the scenes: atomic settlement. Institutions– in this case, OCBC and UOB– will no longer need to wait days for their transaction to be settled in the system back-end.

What enabled OCBC to build up and become a main participant in Singapore’s CBDC ambitions is its expertise in blockchain technology: from payments, to a metaverse, and even in its in-house app for employees, the bank is making use of blockchain.

Ravindra Kumar, managing director of Group Technology Architecture at OCBC, shared their plans to launch to the public in 2024 at least one or two of the blockchain projects they featured at the event .

“By next year, we hope to at least commercialize one or two of them,” Kumar said. “We are planning to start a fixed

SCAN FOR FULL STORY

Blockchain, if we do it right, it can mean atomic settlement.

Instant and in-house More than interoperability, OCBC’s development of blockchain solutions has formed the pillars in current banking technology available that will allow wholesale CBDC to flourish in the future. Chief of this is instant settlement and clearing.

“In the past, settlement can take days and hours behind the scenes, which we [retail consumers] don't realize. Blockchain, if we do it right, it can mean atomic settlement. You don't have to do clearing and settlement for three days. It’ll be instant,” Kumar said.

Beyond instant settlement, OCBC is also making use of its blockchain technology to support its employees. Kumar shared that employees of the bank have a dedicated online app where they can view, share, and sign documents, all while ensuring that they are viewing the latest copy of the said document.

"We notarize all the documents on the blockchain. After that, what happens is, when I receive the document, I have my staff app. I can scan a QR code, and it will tell me whether I have the latest document. This is something big and efficient, because we have thousands of documents in OCBC,” he explained.

They can even receive special NFT art to commemorate milestones in their career and in OCBC’s unfolding history.

The bank has minted about 22 NFT collectibles, distributed to its employees, which employees can then trade over.

Retiring employees can also transfer the NFTs to their own personal accounts–built on blockchain– as a keepsake.

SINGAPORE BUSINESS REVIEW | Q1 2024

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COVER STORY

10 investment ideas for 2024 Experts say it’s time to shift from public to private investments.

Private equity remains an "attractive asset class" for investment (Photo from Freepik)

MARKETS & INVESTING | by Noreen Jazul

W

ealthy investors are choosing to diversify their portfolios by investing in private and alternative assets, a strategy that is gaining attention and prompting many others to emulate.

Accredited investors in Singapore and professional investors in Hong Kong, for example, have also been diversifying into private markets and alternatives, which is underutilised in both markets, said Samuel Rhee, co-founder, chairman and chief investment officer of Endowus.

“The systematic harvesting of illiquidity premiums coupled with the fact that companies are staying private for longer and the structural growth of private credit that is disintermediating the banks allows for greater opportunities to be had for investors in this space,” Rhee told the Singapore Business Review.

Currently, Rhee said investors are still underweight in private markets such as private equity and private credit.

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With private credit, the spread that we’re seeing today gives investors yields that are easily in the high single digit or mid-teens level of returns

The latter, however, has become more appealing to Asian investors.

Citing data from Preqin, Rhee said the Asian private credit market has surged from US$3.2b of assets under management (AUM) in 2000 to US$90b as of June, 2022.

As the Asia Pacific market matures, Preqin foresees accelerated growth in the Asian private credit market.

Alta’s head of Private Capital Markets, Muzahir Degani, also agrees that private credit will remain an “attractive asset class.”

“Public or publicly listed credit [usually] receives a relatively smaller spread over the risk free rate, which, to some extent, you’re not very well covered in terms of inflation,” Degani said in a separate interview. “With private credit, the spread that we’re seeing today gives investors yields that are easily in the high single digit or mid-teens level of returns.”

Ben Charoenwong, assistant professor of finance at the National

University of Singapore Business School (NUS), said lending in the private credit market or distressed private equity vehicles may provide opportunities for investors within a rising interest environment given that “more borrowers have obligations due and require financing.”

“Although risk-taking appetite may subside going forward, there are still good deals to be found in private markets as the monetary, fiscal, and political situations around the world take a toll on the real economy,” Charoenwong told the Singapore Business Review.

Apart from private credit, private capital and private equity also offer great opportunities for investors, said Degani.

“Looking at valuations in the private equity market, high growth tech companies have fallen quite significantly over the last 12 to 18 months. We’re able to pick up very good companies that have actually

COVER STORY

Samuel Rhee

Stripe had a significant down round in the middle of 2023 (Photo from Shutterstock) Muzahir Degani

performed well over this sort of funding downturn within private equity and high-growth tech at very reasonable valuations compared to the height of the market,” he said.

As a case in point, Degani cited names like Stripe which, he said, ostensibly did an extremely significant down round sometime in the middle of this year.

“It was almost half the valuation of its peak in 2021,” he said. “If you look at the numbers [of Stripe], it’s actually grown more than two times over that period. You’re arguably getting twice the quality of the company at half the valuation.”

In terms of markets in the private capital space, Indonesia and Thailand stand out, said Degani.

“Select companies within the private capital space that are coming out from these markets are extremely strong. We’ll be keeping an eye out for attractive opportunities in Indonesia and Thailand,” he said.

Alternative assets Looking at alternative assets and investments, WRISE Wealth Management Singapore chief investment strategist, Cheng Jingwei, has identified real estate, commodities, and hedge funds as high risk-reward instruments.

Multi-strategy hedge funds, in particular, have “consistently generated solid risk-adjusted returns through recent cycles,” said Rhee.

“Market neutral, low beta multistrategy hedge funds have also generated meaningfully positive returns consistently and these returns shine brighter in periods of market dislocation and drawdowns as we

have seen in the past few years,” added the Endowus executive.

Charoenwong, for his part, said there are “likely bargains and opportunities that hedge funds can capture, albeit, a risky strategy.”

“As the yield curve steepens, there are also effects on securities where cash flows lie far out into the future,” said the Singapore-based professor.

He also finds commodities as a good short-term hedge for rising prices. “Oil prices have risen up to almost US$90 a barrel again.

However, it is worth noting that although commodities may provide tactical benefit, they are generally not good long-term investments,” Charoenwong said.

One to agree that commodities are a popular asset class is Jingwei, who has observed this among WRISE clients. Talking about real estate, Jingwei said APAC investors have traditionally focused on such asset

Market neutral, low beta multistrategy hedge funds have also generated meaningfully positive returns consistently and shine brighter in periods of market dislocation and drawdowns

classes which offer “a potential for high returns.”

Jingwei, however, warned that real estate also carries more liquidity risks in a higher interest rate environment.

Rhee, for his part, said investors are still underweight in private real estate.

In the latest property issue of the Singapore Business Review, real estate experts revealed that investors, particularly foreigners, should consider strata commercial spaces as an investment.

“The control in future approvals for new strata subdivision ensures that the supply of such commercial spaces remains limited, which can potentially drive up rental yields and capital appreciation,” Tang Wei Leng, managing director and head of Capital Markets & Investment Services at Colliers Singapore, said in an interview.

“Investing in strata CBD commercial space in Singapore offers local investors the opportunity to leverage their knowledge of the domestic market, and benefit from the continued growth of Singapore's business landscape,” Tang added.

Overall, Degani said real estate is a good inflation hedge because of its steady stream of incomes, and is even a better hedge for inflation than gold.

Healthcare and renewables Another sector which investors should consider dipping their toes into are healthcare and renewables and sustainability.

Charu Chanana, market strategist at Saxo, said there are opportunities in the healthcare sector given the ageing society.

Investing in strata CBD commercial space leverages knowledge of the domestic market (Photo from K8 on Unsplash)

SINGAPORE BUSINESS REVIEW | Q1 2024

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COVER STORY

Many opportunities are available in the healthcare sector given the ageing populations (Photo from Freepik)

Charoenwong raised the same point, adding that the United States and counties in North Asia are also seeing ageing populations.

The NUS expert identified telemedicine, new technological developments in biomedicine, and wellness as areas of opportunities.

Charoenwong and Degani also pointed to companies and technologies involved in sustainability as a good investment, especially those working on the renewable energy sector and general carbon mitigation.

“These include electric vehicles, businesses related to smart grids and storage technologies, and carbon capture,” Charoenwong said.

More than electric vehicles, Degani said the whole electrification of the transport network offers investment opportunities for investors.

No matter how the short-term market moves, Charoenwong said healthcare and sustainability sectors and related businesses will continue to grow.

Fixed income, Asian stocks Should interest rates fall, Rhee said fixed income would be an attractive option.

According to Saxo’s Chanana, the turn in the monetary policy cycle will likely to arrive in early 2024 which could eventually bring a significant respite for the Asian economies.

“A falling interest rate environment, when it comes, will be a big boon to the fixed income sectors,” Rhee said.

“In a falling interest rate environment, the high yield and credit markets in fixed income will come back strongly 40

SINGAPORE BUSINESS REVIEW | Q1 2024

In a falling interest rate environment, the high yield and credit markets in fixed income will come back strongly and equity markets in general should do well

and equity markets in general should do well,” he added.

Fixed income is something that family offices have been paying more attention to, according to Jingwei.

Rhee, for his part, observed that fixed income has also become more appealing to Asian investors.

Asian investors also prefer to invest in Asian equities and bonds, Jingwei explained.

“Whilst the current valuations for Asian equities and bonds are favourable, more concrete developments in market sentiment and economic stimulus in China are necessary to bolster confidence in the potential for meaningful capital gains in the upcoming year," added Jingwei.

Charoenwong has a similar sentiment, saying that Asian stocks appear cheap relative to the United States. “Such pricing has historically correlated with relatively better returns going forward,” the NUS professor said.

Money market funds and cash funds In a volatile market, keeping a significant portion of assets in cash or cash equivalents can be a reasonable choice; however, Endowus’ Rhee pointed out that investors can get better returns on cash allocations by investing in money market funds and cash funds.

Goldman Sachs defines a money market fund as a mutual fund that “invests in short term debt securities.”

“These funds allow investors to participate in a more liquid, diverse and high-quality portfolio than if they were to invest individually,” the investment bank stated, adding that it is the “easiest way to gain access” to the money markets.

Forbes recently named JPMorgan Liquid Assets Money Market Fund, T. Rowe Price Government Money Fund, and BlackRock Wealth Liquid Environmentally Aware Fund Investor amongst the 10 best money market mutual funds of December, 2023.

According to Rhee, money market funds and cash funds yield higher rates over fixed deposits.

Charoenwong said investors have been “piling into” market funds as well, adding that they appear to yield more short-term gains. But he notes that “if the economy takes a turn, then central banks can cut interest rates quickly and investors in money market funds may suddenly see their yields fall.”

Investment strategies Apart from considering the 10 investments above, experts said the most important thing for investors to do, regardless of environment, is diversification.

Ben Charoenwong

Markets for renewable energy sources will continue to grow (Photo from Pexels) Cheng Jingwei

COVER STORY

Charu Chanana

Investors can get better returns by investing in money market funds (Photo by Precious Madubuike on Unsplash)

“Risk management remains important while investing in Asia or other emerging markets, and portfolio diversification remains key,” Chanana said.

Charoenwong said investors will specifically benefit from “diversification across geographies and industries.”

“This way, if some policy change affects one industry-market in a negative way, there are likely spillover winners elsewhere. For example, the US-China tension results in more American companies moving their supply chains into Southeast Asia, improving returns in the latter markets even if the returns in the Chinese market deteriorate,” Charoenwong said.

“In addition to the standard tools like diversifying across securities within a market, investors may want to focus on diversifying their risks across more dimensions, like industry and geographies. Investors who do not prefer to move allocations into and out of the market rapidly may consider incorporating cross-asset hedges to manage certain types of risks, such as those from currency and interest rate movements,” the NUS professor added.

DCA approach Rhee, for his part, advised investors to consider adopting a dollarcost averaging (DCA) strategy as a passive investment approach through a downturn.

He defined DCA as periodic, recurring investments of a fixed amount of money into a specific asset.” “Investors can either have a total investment amount in mind or have an ongoing investment as a savings plan. DCA removes any emotional and behavioural mistakes and minimises market timing risk,” he explained.

“As such, investors, particularly those with a lower risk tolerance, are less likely to make impulsive, speculative decisions based on personal opinions or market conditions,” he added.

A DCA approach also allows investors to purchase more shares at lower prices whilst remaining positioned for an eventual market rebound, Rhee said.

WRISE’s Jingwei, meanwhile, suggested implementing a barbell strategy, especially for investors in the APAC region.

“A barbell strategy involves allocating a portion of your assets into lower volatility instruments such as short-duration treasuries and high-quality corporate credit to secure a stable return as well as to keep the portfolio liquid,” Jingwei explained.

In addition to adopting a barbell strategy, Jingwei also advised investors to steer clear of long-duration fixed-income investments due to the potential volatility in interest rates.

Whilst experts suggest good investments or strategies, Charoenwong underscored that

[Good returns] is about whether you invest in a company whose performance is better than the market expects

investors should “avoid investing into something just because others have mentioned it, particularly if the investors themselves do not have any advantage in a particular investment,” citing artificial intelligence as an example.

“Given current market conditions, investing in AI stocks may not yield good returns going forward based on the high current valuations already.

The financial markets have focused a lot on the development of AI, but they may have mispriced the relevance of AI as a general purpose tool for other types of companies as well,” Charoenwong said.

He concluded with an important reminder for investors: “Good returns are not about whether you invest in a growing company.”

“It is whether you invest in a company whose performance is better than the market expects. Therefore, when considering allocating a particular way, it is worthwhile asking ourselves what our beliefs are that differ from the market to justify higher-than-market returns,” he said.

DCA removes any emotional and behavioural mistakes and minimises market timing risk (Photo by David McBee on Pexels)

SINGAPORE BUSINESS REVIEW | Q1 2024

41

INDUSTRY INSIGHT: LEGAL

Shifts in impact investing provide a rich ground for legal representation

Financial services is the top practice area for SG lawyers

The emergence of new technologies is forcing a ‘new age of lawyering'.

PROFESSIONAL SERVICES/LEGAL | by Noreen Jazul

S

ingapore's rise as a popular destination for high-net-worth families and the resurgence of asset management and private equity investment activity in Southeast Asia has spurred the demand for legal advice in the financial services space, thus making it the top practice area for lawyers in the country.

“International capital continues to pour into the country, and businesses and investors seek a safe haven while the global economy faces ongoing uncertainty and disruption,” Prajakt Samant, Asia managing partner at Reed Smith, told the Singapore Business Review.

Joo Khin Ng, partner at Morgan, Lewis & Bockius LLP and director at Morgan Lewis Stamford LLC, shared the same observation, noting how investment funds practice continues to see increasing demand.

“We advise funds, managers, financial services firms, and institutional investors on the most important legal issues their businesses face, particularly on impact funds,” Ng said about the practice.

“Impact investing is a fast-growing movement seeking to channel capital and expertise to companies trying

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SINGAPORE BUSINESS REVIEW | Q1 2024

Prajakt Samant

Joo Khin Ng

Wendell Wong

to solve some of the most urgent issues facing society. With a strong focus on emerging markets, we have represented funds investing in emerging geographies, like India, Latin America, Bangladesh, Indonesia and Africa.”

Samant, for his part, observed that many clients are seeking legal advice when investing in new energy sources and raw materials.

Similarly, Ng said ESG issues have also been of growing importance to his firm’s clients “as businesses and investors focus on incorporating sustainability principles into their operations and investments.”

In response to client demand in these practice areas, Reed Smith has hired a market-leading investment funds partner in the identity of Han Ming Ho and financial regulatory partner, Jill Wong.

Demand for legal services in the financial services sector also draws from Singapore’s status a regional financial hub. According to Ng, their clients from the sector often seek guidance on corporate structuring, mergers and acquisitions, financial regulation, and dispute resolution.

Dispute resolution The financial service sector isn’t the only sector where demand for dispute resolution is growing.

“As global supply chains continue to fragment and trade wars have little sign abating, we see more cross border conflict in a range of sectors,” Samant said.

“Our international arbitration teams have been kept busy in recent months; this is supported by the fact that Singapore has become a very popular venue for arbitration proceedings. In addition, legislation has allowed for third-party funding in Singapore, which has led to changes in the disputes market,” he said.

Dispute resolution services that have seen increasing demand include litigation, arbitration, and mediation. Mediation and international arbitrations have been hotbeds of activity for disputes in the transportation industry.

“The increasing complexity of legal matters and the preference for alternative dispute resolution methods contributed to this,” Ng said.

Tech and data Disputes also rose in the area of “new technology” such as cryptocurrency, cryptocurrency exchanges, nonfungible tokens (NFTs), said Wendell Wong, director, Dispute Resolution at Drew & Napier LLC. “High-profile criminal prosecutions relating to FTX, Binance and other key players in the industry have fuelled higher demand for legal services. The rise of such new technology has meant that lawyers have had to acquire significant content knowledge in these areas in order to effectively advise on such matters,” Wong said of the new niche.

“We are now seeing more legal practitioners pivot to specialising in such matters, whether in terms of corporate advisory or disputes work,” Wong explained.

With growing need for legal expertise in technology, as well as data, Reed Smith hired Barbara Li to lead its Tech and Data practice in China.

“Many jurisdictions are introducing or strengthening their data protection and privacy regulations. Most notably, we have seen China introduce a slew of regulations in the last 12 months."

INDUSTRY INSIGHT: LEGAL 2023 Rankings

LAW FIRM

2022 Rankings

Foreign/Local

2022 Legal Professionals

2023 Legal Professionals

Managing Partner

1

Allen & Gledhill

1

LOCAL

436

458

JERRY KOH

2

Rajah & Tann Singapore LLP

2

LOCAL

380

380

PATRICK ANG

3

Drew & Napier LLC

4

LOCAL

331

368

CAVINDER BULL, S.C. *CEO NOT MP*"

4

WongPartnership LLP

3

LOCAL

375

338

NG WAI KING

5

Dentons Rodyk & Davidson LLP

5

LOCAL

199

191

GERALD SINGHAM GLOBAL VICE CHAIR & ASEAN CEO

6

Baker McKenzie Wong & Leow (Singapore)

-

FOREIGN

-

180

JAMES HUANG MANAGING PRINCIPAL

7

Shook Lin & Bok LLP

6

LOCAL

138

142

LIEW KAI ZEE

8

Linklaters

8

FOREIGN

127*

140*

JONATHAN HORAN *

9

Withers KhattarWong

7

LOCAL

128

98

DEBORAH BARKER, S.C.

10

Lee & Lee

9

LOCAL

91

91

MS. KWA KIM LI

11

Allen and Overy

10

FOREIGN

76*

79

TIM BEECH & GAUTAM NARASIMHAN JOINT MANAGING PARTNERS*

12

Bird & Bird ATMD LLP

15

LOCAL

52

74

JEREMY TAN

13

Harry Elias Partnership

11

LOCAL

70

65

PHILIP FONG

14

TSMP Law Corporation

12

LOCAL

69

61

THIO SHEN YI, SC & STEFANIE YUEN THIO JOINT MANAGING PARTNERS

15

Norton Rose Fulbright

13

FOREIGN

59

59

YU-EN ONG

16

Herbert Smith Freehills

14

FOREIGN

58

58

FATIM JUMABHOY

17

RHT Law Asia (RHTLaw Taylor Wessing LLP renamed in 2020)

16

LOCAL

51

47

AZMAN JAAFAR

18

CNPLaw LLP

17

LOCAL

44

44

THENG SIEW LIAN LISA

19

HFW

18

FOREIGN

42

42

JOHN FORRESTER

20

Morgan Lewis Stamford LLC

21

LOCAL

28

40

JOO KHIN NG

21

Tan Peng Chin LLC

19

LOCAL

40

32

WONG LIANG KOK & LIM JO SEE JOINT MANAGING PARTNERS

22

Tan Kok Quan Partnership

20

LOCAL

31

29

MARINA CHIN, S.C. & EDDEE NG JOINT MANAGING PARTNERS

23

Kelvin Chia Partnership‎

22

LOCAL

24*

26

KELVIN CHIA*

TOTAL

2849

3042

Notes: • (-) Firm/s did not particpate in the 2022 rankings.

• (*) Information based on the firm's website • Employee count is based on the number of legal professionals in each firm as of 30 September 2023.

SINGAPORE BUSINESS REVIEW | Q1 2024

43

LEGAL LUMINARIES

20 most outstanding lawyers under 40

T

en women and ten men have made it into the Singapore Business Review's 2024 list of most influential lawyers under 40.

This year’s awardees have served and advised big clients such as Keppel Corporation, Temasek Holdings, StarHub, Morgan Stanley, Citigroup, OCBC Bank, and DBS Bank, to name a few. One of this year’s awardees is assisting investigations on Singapore's largest money laundering case.

Agents in this year’s list come from Rajah & Tann Singapore LLP, Drew & Napier LLC, Dentons Rodyk & Davidson LLP, Withers KhattarWong, Bird & Bird ATMD LLP, Harry Elias Partnership, TSMP Law Corporation, HFW, Morgan Lewis Stamford LLC, and Tan Kok Quan Partnership.

Leading the pack is Drew & Napier with four representatives.

The youngest in this year’s list is from Tan Kok Quan Partnership.

Here are this year's awardees arranged from youngest to oldest:

3

1

Leong Qianyu is a seasoned attorney specialising in high-value corporate and commercial disputes, with extensive experience in insolvency and restructuring.

Her notable work includes representing liquidators in complex litigation against Hyflux Ltd.’s former auditor and director, handling United Overseas Bank Limited’s case involving $181m (US$135.86m) in mortgage loans, advising Wirecard AG in a €1.9-b fraud investigation ($2.76b or US$2.07b), and assisting bank lenders in the Hyflux groups restructuring and liquidation. She also actively mentors junior lawyers and participates in pro bono legal clinics.

Samantha Ng, Withers KhattarWong, 31

Samantha Ng, a senior legal associate at Withers KhattarWong, specialises in private client and tax advisory. She is a trusted advisor for many ultra-high net worth families on their multi-generational and international estate and succession planning needs.

She helps set up family offices, trusts, charitable foundations, and to put in place family governance arrangements to tie together each of these family entities.

KhattarWong is recognised as one of the “Rising Leaders” by the Private Client Global Elite and a finalist for the Young Practitioner of the Year Award at the Society of Estate and Trust Practitioners Annual Awards.

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SINGAPORE BUSINESS REVIEW | Q1 2024

Leong Qianyu, Tan Kok Quan Partnership, 30

4

Leong Lijie, Tan Kok Quan Partnership, 32

Leong Lijie, focuses on infrastructure, construction, engineering, and real estate disputes. He is recognised for his commercial acumen and practical approach in resolving disputes.

His notable work includes securing over $11m (US$8.25m) in compensation for a construction delay case, advising a major contractor in a mixed-use development dispute exceeding $11m (US$8.25m), and obtaining over $3m (US$2.25m) in compensation for a building defects case.

Leong’s versatility extends to advisory and transactional matters, ensuring he provides a comprehensive service to clients.

2

Stephanie Chew, TSMP Law Corporation, 30

Stephanie Chew, a former deputy public prosecutor/state counsel at the AttorneyGeneral’s Chambers, brings her extensive experience in complex investigations and highprofile financial crime and corruption cases to TSMP’s litigation team.

Her role now focuses on corporate and commercial disputes, representing clients in contentious matters such as oppression claims and investor disputes. Her cases include one involving Luckin Coffee Inc. Alongside her legal work, Chew engages in pro bono service as a volunteer lawyer with the Criminal Legal Aid Scheme.

5

Loren Leung, Bird & Bird ATMD LLP, 33

As a partner at Bird & Bird’s award-winning Technology, Media, and Telecommunications team, Loren Leung has achieved meaningful recognition in the field, having grown her practice across all aspects of technology, digital, and data law across the Asia-Pacific region.

Her clients include multinational corporations, fast-growth technology companies, and startups. Loren specialises in privacy and data protection, often advising on complex, multijurisdictional mandates, and has been engaged by one of the world’s largest multinational technological companies as their privacy specialist for APAC. Another area of expertise for Leung.

LEGAL LUMINARIES 6

Audrey Lim, Bird & Bird ATMD LLP, 33

Audrey Lim is an expert in IP law, specialising in strategic brand advisory, brand protection and management across various global industries. She excels in handling global trademark matters, licensing agreements, franchise agreements, and liquidation matters involving IP assets.

She also bears solid competence in contentious IP and domain name dispute matters. She demonstrates a deep understanding of local laws in the region and beyond and contributes thought leadership articles. Her key cases include assisting the Government of Greece in opposing the cancellation of the “Feta” geographical indication registration for cheese and 9

Priscilla Wang, Director at Drew & Napier LLC, 34

Priscilla Wang’s legal expertise spans mergers and acquisitions, public take-overs, privatisations, joint ventures, corporate restructurings, and employment matters.

Her notable deals involve substantial equity investments, major acquisitions, and high-value corporate restructuring projects, which include companies like Yangzijiang Realty Pte. Ltd., FWD Group, and SK Ecoplant. She offers counsel to both publicly listed and privately held companies, engaging in diverse corporate transactions, including cross-border transfers. Her contributions as a member of the firm’s ESG practice group have earned her a reputable position in the legal field.

7

Jin Wei Tan, Drew & Napier LLC, 33

Jin Wei is a director at Drew & Napier LLC’s Corporate/M&A team. His expertise encompasses mergers and acquisitions, private equity, venture capital investments, joint ventures, capital markets, corporate governance, and restructuring matters.

With experience in both private and public M&A transactions, Tan has advised various parties in cross-border deals across diverse sectors. His notable accomplishments include advising on award-winning multi-billiondollar acquisitions, privatisations, competitive takeover deals and restructurings, having acted for Temasek Holdings, Pfizer, OCBC Bank, StarHub, BPEA, Morgan Stanley and Citigroup.

10 Mitchell Yeo, Drew & Napier

LLC, 34

Mitchell Yeo, a Director at Drew & Napier LLC, specialises in Corporate Restructuring & Workouts and Asset Recovery. Mitchell played a pivotal role in major restructuring cases, including those of Pacific International Lines and Hyflux, working with a spectrum of stakeholders.

He is also published in legal publications and actively volunteered for migrant worker support, especially during the COVID-19 pandemic. He is a member of several law organisations including, Singapore Academy of Law and Law Society of Singapore. Yeo said his goal is to continue excelling in Restructuring & Insolvency, building a strong reputation among professionals.

8

Eugene Neo, TSMP Law Corporation, 33

Eugene Neo is a strong advocate of pro bono work, notably succeeding in a groundbreaking Employment Claims Tribunal appeal ([2023] SGHC 166), clarifying overtime pay limits.

The Singapore Law Society cited him as a “Champion of Pro Bono.”

Neo’s daily legal work spans diverse industries. He represents billionaire Carlos Manuel de São Vicente in a Singapore High Court case ([2023] SGHC 143), clarifying criminal motions. He is well-versed in the digital token space, advising Binance on cryptocurrency disputes. Neo also helped a pan-regional healthcare company recover over $90m (US$67.47m) in debt and avoid windingup. He boasts mooting achievements and 11 Jeremy Pereira, Withers

KhattarWong, 35

Jeremy Pereira is a senior associate at Withers KhattarWong whose focus is in criminal law, particularly on white-collar and financial crimes. He handles highprofile cases and is involved in investigations concerning S Iswaran, Ong Beng Seng, and Singapore’s largest money laundering case.

Pereira has extensive experience with various criminal cases, including cheating, corruption, money laundering, and securities violations. He also defends against blue-collar offenses and is on the Supreme Court’s list of assigned lawyers for capital cases. Pereira’s passion for legal education is reflected in his teaching roles at Singapore University of Social Sciences and SAFTI. SINGAPORE BUSINESS REVIEW | Q1 2024

45

LEGAL LUMINARIES 12 Lau Wen Jin, Dentons Rodyk &

13 Rex Huang Yanting, Drew &

Lau Wen Jin is an outstanding advocate of the law. His accolades include commendations from the Singapore Court of Appeal for his “steadfast” legal representation, and “diligent and painstaking effort” in seeking to persuade the court.

He also recently succeeded in an appeal as lead counsel in a trust case before the Court of Appeals. In addition to an LLB degree with highest distinction from the Singapore Management University, he also holds a specialist Master of Laws degree in International Arbitration & Dispute Resolution from the National University of Singapore, and a Master of Advanced Studies (LL.M.) in International Dispute Settlement.

Rex Huang Yanting, holds dual qualifications to practice law in Singapore and in China.

Specialising in corporate finance, commercial transactions, and regulatory compliance, he focuses on the Greater China, Singapore, and regional markets.

He is recognised for his extensive expertise in the legal and regulatory aspects of blockchain and cryptocurrencies, advising world-leading firms such as Coinbase Inc. He has aided Huohua Siwei, a prominent K-12 online education firm, in its expansion to Singapore. His notable achievements include guiding Haidilao International Holding Ltd’s US$964m (SG$1.28b) IPO and handling various high-profile deals.

Monro is a senior associate lawyer at HFW’s Singapore office. He is a shipping specialist with a broad practice encompassing dry shipping disputes, oil and gas, insurance, and offshore energy.

With extensive experience in both court and international arbitration proceedings, he has represented clients in many highvalue disputes and has been commended for his commercial awareness, strong grasp of complex legal issues, and thoughtful approach to case strategy. Alongside his casework, Hugo regularly delivers presentations, workshops, and pro bono training sessions to clients and industry organisations in Singapore.

16 Chrystle Kuek, Morgan Lewis

17 Tng Sheng Rong, Rajah & Tann

Chrystle Kuek is an Associate Director with expertise in M&A, capital markets, and corporate restructurings.

Kuek recently represented Challenger Technologies, Singapore’s homegrown consumer electronics chain, on a $224-m (US$168m) take-private bid by United Overseas Bank for and on behalf of DigiTech Holding.

She also represented APAC Realty, a leading real estate services provider with the exclusive ERA regional franchise rights for 17 countries and territories in Asia Pacific, on the mandatory general offer by SAC Capital Private for and on behalf of NHPEA Ace Realty Company to acquire the shares of APAC, based on an approximate $203-m (US$152-m) valuation.

Sheng Rong’s cup of tea is commercial litigation and arbitration, particularly in intellectual property law and technology law.

He has an impressive record of representing clients in significant cases, such as the landmark breach of confidentiality case for I-Admin (Singapore) and a multijurisdictional dispute over copyright in a global eSports video game franchise for NetEase. He also acted in the first-ever case before the Singapore International Commercial Court, involving a dispute over a novel patented coal upgrading technology for White Energy Company. He is one of the youngest to be admitted to the equity partnership at Rajah & Tann Asia.

Davidson LLP, 36

15 Ho Mei Shi, Rajah & Tann

Singapore LLP, 36

Ho Mei Shi, a Partner in the Banking and Finance Practice Group, boasts a remarkable career in serving major banks, financial institutions, government-linked entities, REITs, and global conglomerates that include multi-billion dollar transactions.

Her expertise includes green and sustainability-linked financing, acquisition financing, real estate and construction financing, as well as project financing. Clients praise her as “extremely knowledgeable” and value her sound legal advice in banking deals.

Her excellence has earned her recognition in esteemed legal directories and publications, including as a Notable Practitioner in Banking & Finance (IFLR1000 2023-2024).

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SINGAPORE BUSINESS REVIEW | Q1 2024

Napier LLC, 36

Stamford, 37

14 Hugo Monro, HFW, 36

Singapore, 37

LEGAL LUMINARIES 18 Widya Rianita, Morgan Lewis

19 Penelope Loh, Rajah & Tann

Widya Rianita shines in the field of M&A, private equity, joint ventures, and corporate restructurings. She serves prestigious clients, including private equity funds, multinationals, sovereign wealth funds, state-owned enterprises, and banks, with a strong focus on Southeast Asia, particularly Singapore and Indonesia.

Widya has overseen complex transactions, such as the sale of Jaya Grocer and advising Keppel Corporation on a significant merger.

She is known for her thought leadership contributions and commercial acumen. Her previous experience in finance enhances her business-oriented approach, making her the go-to lawyer for Southeast Asian M&A, private equity, and investments.

Penelope Loh is a highly experienced professional specialising in corporate transactions for public listed and private companies. Her broad expertise covers mergers and acquisitions, joint ventures, fundraising exercises, and more.

She has been involved in significant private equity and venture capital deals, like advising DBS Bank on its $666-m (US$500-m) growth stage debt financing platform, EvolutionX. Her diverse portfolio includes successful cross-border investments, such as advising Keppel Infrastructure Trust as Singapore counsel in its acquisition of a leading integrated waste management services player in South Korea. Penelope also excels in complex M&A

Stamford, 38

Singapore, 38

20 Joanna Seetoh, Harry Elias

Partnership LLP, 39

Joanna Seetoh is a specialist in construction and infrastructure disputes, having been accredited by the Singapore Academy of Law as an Accredited Specialist in Building and Construction Law and inducted as a Fellow by the Singapore Institute of Arbitrators.

She frequently acts as lead counsel in multimillion-dollar disputes, and her expertise has earned her recognitions in publications.

Her contributions to the legal field extend to speaking engagements, Law Society and Society of Construction Law committee and council memberships, as well as contributions to key construction textbooks in Singapore, demonstrating her commitment and influence in the industry.

SINGAPORE BUSINESS REVIEW | Q1 2024

47

INDUSTRY INSIGHT: LEGAL

4 bills businesses should know in 2024 One of the measures will screen investments in entities critical to Singapore’s national security.

PROFESSIONAL SERVICES | by Noreen Jazul

S

ingapore Business Review has curated a list of critical measures that are likely to impact business and investors alike in 2024, particularly against criminal activities and workplace discrimination.

“Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) (Amendment) Bill” (CDSA) This bill regulates and addresses “the flow of funds arising from criminal activities, such as drug trafficking and corruption as well as money laundering.”

Recently, Singapore was rocked by its biggest money-laundering scandal to date which led to the arrest of 10 foreigners and seizure of more than $2.8b (US$2.1b) of assets that included 152 properties.

The bill, however, was discussed in the Parliament even before the scandal broke out.

Keith Tnee, senior partner at Tan Kok Quan Partnership, said the amendments in the new bill seeks to address instances “where people may retain, control, have access to funds, which are the fruits of such criminal activities, which they either know or should have known of.”

“It seeks to extend the scope [of the older bill] to people who may negligently failed to investigate into the provenance of these offenses,” Tnee added.

Given the potential financial headwinds, we may see some companies seeking recourse under [SIP] for a couple of months

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A new bill provides a clearer legal framework for reporting and addressing workplace discrimination (Photo from Ekaterina Bolovstova on Pexels)

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SINGAPORE BUSINESS REVIEW | Q1 2024

The proposed bill aims to expand its scope to cover individuals who negligently fail to investigate the source of criminal funds. This means that if a bank account holder receives or sends money linked to a crime and does not inquire about its use after giving control of the account, they may be held accountable, according to the Ministry of Home Affairs (MHA).

In light of the recent moneylaundering case, there is a growing expectation of increased regulation especially in the banking and financial sectors, which may impact companies handling large overseas funds.

Significant Investments Review (SIR) Bill The second bill on the list aims to protect Singapore’s national security interests by screening significant investments in, and control of, entities considered critical to national security.

Under the Significant Investments Review (SIR) Bill which was first introduced in October 2023, specially tagged "Designated Entities" will be subject to specific restrictions.

Joo Khin Ng, partner at Morgan, Lewis & Bockius LLP, said these restrictions include requiring investors to obtain prior approval from the government before acquiring a certain percentage of ownership or control in a Designated Entity; limiting the voting rights of foreign

investors in a Designated Entity; and requiring foreign investors to divest their holdings in a Designated Entity if they are found to pose a threat to Singapore’s national security.

According to Morgan Lewis, the minister will have the power to designate any entity that is incorporated, formed, or established in Singapore; carries out any activity in Singapore; or provides any goods and services to any person in Singapore.

Workplace Fairness Legislation Another bill which will be introduced in the Parliament in 2024 is the Workplace Fairness Legislation.

Ng said the bill aims to protect workers from discrimination on the basis of race, religion, language, sex, marital status, age, disability, sexual orientation, and other relevant factors.

“It will also provide a clearer legal framework for reporting and addressing workplace discrimination,” added Ng. The bill, according to the International Bar Association (IBA), will “provide employees with specific causes of action and access to damages for workplace discrimination” and provide “specific enforcement mechanisms for the government to impose penalties for companies that engage in workplace discrimination.”

Amended Insolvency, Restructuring and Dissolution Act (IRDA) This bill paves the way for the extension of the Simplified Insolvency Programme (SIP) to 2026.

Tnee said the SIP is essentially a “cheaper and easier way” for companies to restructure their debts.

“Given the potential financial headwinds, we may see some companies seeking recourse under this program for a couple of months,” Tnee said.

Tnee said companies in Singapore may have to “look out” for the finances and the financial health of their corporate debtors, which will likely be small and medium sized companies (SMC), in case some of them go under the programme.

SINGAPORE BUSINESS REVIEW | Q1 2024

49

INSURANCE RANKINGS

Great Eastern Life takes the lead in this year's insurance rankings (Photo from Tang Yan Song on Shutterstock)

Singapore’s top 50 insurers see 3.7% YoY asset decline in 2022 Experts’ industry outlook for 2023-2024 centre on digital evolution with AI, protection gaps, strategic partnerships, and resilience amidst challenges.

INSURANCE | by Olivia Tirona

C

hanging economic conditions, rising inflation, and geopolitical uncertainties have led to contractions in the life insurance business and lukewarm growth in other areas of the industry, according to the Ministry of Trade and Industry.

This is also reflected in the latest Singapore Business Review Insurance Rankings, with a 3.7% year-on-year (YoY) asset decline experienced by the top 50 insurance firms in 2022.

The Singapore Business Review Insurance Rankings compiles an annual roster of the 50 leading insurance companies in Singapore, based on their assets. The information is sourced from the annual statistics provided by the Monetary Authority of Singapore (MAS), with the latest rankings reflecting data from 2022 and making YoY comparisons.

The annual rankings saw 21 life insurers, 23 general insurers, four life reinsurers, and two general reinsurers in the top 50 list.

Amongst the top 10 insurers, seven saw contractions in their annual increments whilst only two recorded growth, and the other saw no statistical change. Keeping the top 50

SINGAPORE BUSINESS REVIEW | Q1 2024

Swetansha Chauhan

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spot as last year was Great Eastern Life, despite a 1.52% YoY shortfall in its assets. AIA Singapore also stood firm at second place, amidst a drop in assets by 11.45% YoY. At third place was Prudential Singapore, followed by Income Insurance at fourth place, and then Manulife, which countered the trend by inching up 0.64% YoY in its assets.

Prudential Singapore and Income Insurance both saw contractions of 7.15% and 9.44%, respectively.

Amongst the top ten, Singlife recorded the largest growth of 6.91% YoY at sixth place. The rest in the top 10 all saw negative increments in their YoY assets: Tokio Marine Life at seventh place, HSBC Insurance at eighth place, HSBC Life at ninth place, and Etiqa at 10th place.

The state of premiums In 2022, the aggregated new business premiums in the direct life insurance sector experienced a 4.1% fall to $6.3b, data from the Economic Survey of Singapore 2022 showed.

Notably, the single premium business saw a more pronounced decrease of 9.4%, amounting to $23.5b, whilst the regular premium

business exhibited a modest decline of 0.6%, reaching $3.9b. The net income of the direct life insurance industry exhibited a significant contraction, plummeting from $1.6b in 2021 to a $1.5b in 2022, primarily attributed to a reduction in investment income.

Conversely, in the general insurance industry, gross premiums recorded a notable increase of 9.7%, totalling $18.3b in 2022. This growth was driven by contributions from both offshore and domestic businesses, accounting for $12.9b and $5.4b, respectively.

However, the operating profit of the industry in 2022 experienced a decline, amounting to $500m, down from $1.2b in the preceding year. This reduction was primarily attributed to a decrease in investment income.

The general insurance industry is anticipated to grow at a 5.8% compound annual growth rate (CAGR), to SG$7.35b (US$5.5b) in gross written premiums (GWP) by 2028, as forecasted by GlobalData.

Swetansha Chauhan, an insurance analyst at GlobalData, noted that the industry’s growth is expected to slow from 2023 onwards.

“Changing economic conditions, rising inflation and geopolitical uncertainties have led to sluggish growth in all general insurance lines of business, which is expected to slow down the overall industry growth in 2023,” Chauhan said.

She added that Singapore’s general insurance penetration at 0.8% in 2022 indicates substantial growth potential compared to other APAC countries.

This anticipation of growth will be on the back of increased health insurance demand, mandatory fire insurance, and rising premiums due to inflation are expected to support the industry’s growth over the next five years.

The life industry holds the same fate, with a forecasted CAGR of 9.8% from SG$62.9b (US$47.2b) in 2022 to SG$100.4b (US$77.0b) in 2027 in terms of GWP, according to GlobalData.

In 2022, the industry experienced a notable growth of 13.3%, with a projected growth of 10.9% in 2023.

The surge is attributed to heightened awareness of financial planning post-pandemic, leading to increased demand for protection products such as term and whole life insurance.

INSURANCE RANKINGS LIFE

2022 Total Assets (SG$) $71.1b

2021 total assets (SG$) $72.2b

LIFE

$52.4b

$59.2b

LIFE

$51.5b

$55.5b

4

LIFE

$39.2b

$43.3B

MANULIFE

5

LIFE

$32.7b

$32.5b

6

SINGAPORE LIFE

7

LIFE

$12.3b

$11.5B

7

TOKIO MARINE LIFE

6

LIFE

$10.6b

$11.6b

8

HSBC INSN

8

LIFE

$9.1b

$11.3b

9

HSBC LIFE

-

LIFE

$4.4b

--

10

ETIQA PL

10

LIFE

$3.7b

$3.7b

11

UTMOST INTERNATIONAL

-

LIFE

$2.4b

--

12

TRANSAMERICA

11

LIFE

$1.9b

$3b

13

INCOME

13

GENERAL

$1.3b

$1.5b

14

SWISS LIFE

16

LIFE

$1.1b

$1.2b

15

ST. JAMES'S PLACE

17

LIFE

$1b

$1.1b

16

FRIENDS PROVIDENT

15

LIFE

$1b

$1.2b

17

FIRST CAPITAL

19

GENERAL

$970.8m

$949.1m

18

CHINA TAIPING

21

LIFE

$881.6m

$809.7m

19

SWISS RE ASIA

23

LIFE/REINSURER

$873.7m

$645m

20

CHINA REINSURANCE

22

LIFE/REINSURER

$692.6m

$747.6m

21

MONUMENT

-

LIFE

$686.9m

--

22

MUNICH RE

18

LIFE/REINSURER

$602.1m

$1b

23

MSIG

25

GENERAL

$565.6m

$560.7m

24

AIG ASIA

28

GENERAL

$526.2m

$496.9m

25

INDIA INTERNATIONAL

26

GENERAL

$509.3m

$533.9m

26

CHINA LIFE

27

LIFE

$469.3m

$508m

27

LIBERTY INSURANCE

32

GENERAL

$464.4m

$424m

28

CHUBB INS

31

GENERAL

$445.5m

$424m

29

SWISS RE ASIA

23

GENERAL/REINSURER

$437.5m

$136.8m

30

TOKIO MARINE INS

30

GENERAL

$430.6m

$443.8m

31

LLOYD'S ASIA SCHEME

33

GENERAL

$423m

$389.9m

32

CHINA TAIPING

21

GENERAL

$399.6m

$444.2m

33

GEG

35

GENERAL

$381m

$314.3m

34

CIGNA EUROPE

36

GENERAL

$325m

$262.7m

35

UTMOST WORLDWIDE

34

LIFE

$294.2m

$372.7m

36

QBE INS

40

GENERAL

$245m

$225.6m

37

SOMPO INS

39

GENERAL

$232m

$226.7m

38

UOI

37

GENERAL

$230.6m

$246.8m

39

ALLIED WORLD

41

GENERAL

$228.4m

$207.3m

40

XL INS

38

GENERAL

$219.8m

$230.3m

41

FACTORY MUTUAL

42

GENERAL

$217.6m

$194.3m

42

ALLIANZ GLOBAL C&S

44

GENERAL

$210.6m

$191.8m

43

HSBC LIFE

-

GENERAL

$203.3m

--

44

RGA INTL

43

LIFE/REINSURER

$199.2m

$192m

2023 Rankings

Insurance Company

2022 Rankings

Classification

1

GREAT EASTERN LIFE

1

2

AIA SPORE

2

3

PRUDENTIAL

3

4

INCOME

5

45

SUN LIFE

61

LIFE

$194.3m

$86.4m

46

ETIQA PL

10

GENERAL

$181.3m

$173.7m

47

SINGAPORE RE

46

GENERAL/REINSURER

$169.9m

$170.9m

48

ZURICH

51

GENERAL

$156.4m

$133.8m

49

EQ INS

50

GENERAL

$153.1m

$135.4m

50

FWD SINGAPORE

62

LIFE

$153m

$85.3m

TOTAL

$309.1b

$320.8b

3.66% increase from last year’s rankings

SINGAPORE BUSINESS REVIEW | Q1 2024

51

INDUSTRY INSIGHT: FINANCE

Singapore’s IPO scene under threat from US, Australia Homegrown firms such as Simpple and Grab chose to list in the US.

Grab, a Singapore-based firm, is listed in the US

MARKETS & INVESTING | by Noreen Jazul

W

hilst Singapore and Hong Kong have been fierce competitors in the IPO scene, experts suggest that Singapore shift its focus to the emerging challengers: the United States and Australia.

In 2023, the United States saw the listing of Singapore-based companies such as Simpple and Ohmyhome. Other homegrown firms like Grab and PropertyGuru are also listed in the US. “If an entity wants to list totally outside of China, then there’s no need to compete with Hong Kong, because obviously, Hong Kong is very much tied to China,” CLA Global TS Holdings Group CEO and Chief Innovation Officer, Henry Tan, told the Singapore Business Review.

Tan said there are two main reasons why some potential IPO entrants in Singapore are going to the US and Australia: valuation and volatility.

One way to increase Singapore’s market valuation is by targeting companies in Southeast Asia, rather than Korea and China.

“If it’s an ASEAN firm, for example a Thai, Philippine, or Malaysian company, coming to Singapore Exchange it will be seen as an 52

SINGAPORE BUSINESS REVIEW | Q1 2024

Singapore has never been known to be a highly speculative investor base market

upgrade, but if you will target Chinese companies, it most likely be seen as a downgrade to come [in Singapore] in terms of valuation,” Tan explained.

“I would prefer that [Singapore] target more of regional play, and then make the Singapore Exchange truly an ASEAN platform, a platform for capital in Southeast Asia,” Tan added.

In 1H23, proceeds raised through initial public offerings (IPOs) in Singapore nosedived, falling 95% YoY to $28m (US$20.39m).

Data from Deloitte showed that Singapore only had three IPOs in 1H23, namely, YKGI Limited ($19.80m=US$14.42m), Ever Glory United Holdings Limited ($3.08m=US$2.24m), Pasture Holdings ($5m=US$3.64m), and LYC Medicare Singapore Limited. In 1H22, the Lion City saw nine IPOs and raised $572m (US$416.57m).

Market capitalisation likewise fell year-on-year, dropping by 83% to $137m (US$99.78m) in 1H23 from $790m (US$575.40m) in 1H22. The number of new IPOs also fell by 67%.

Return of REIT, SPACS According to the report, there was also absence of Real Estate Investment Trusts (REITs) and Special Purpose

Acquisition Companies (SPACs) listings in 1H23.

The most recent REIT listings were Daiwa House Logistics and Digital Core REIT in 2021, whilst SPAC listings cooled since the subsequent listing of three SPACs in January 2022.

Apart from rising interest rates, Tan said the decline in REIT listings can be linked to Singapore’s limited assets.

“Whatever building that we have that can be put into a REIT is already there. This means, REITs have to reach for overseas assets. As we know, overseas assets are quite different from Singapore assets and investors would not be so familiar with them,” Tan said.

Tan, however, underscored that the Singapore REIT market remains strong and continues to be ideal for discerning investors.

Commenting on SPACS, Tan said the decline can be linked to the risk appetite of investors in Singapore.

“Singapore has never been known to be a highly speculative investor base market. Something like a SPAC obviously requires more risk taking traders who are looking at more speculative, as well as, maybe higher risk investment,” Tan said.

Growth areas Whilst real estate continues to face a lot of headwinds, Tan believes REITs may return to the market given the premise that “interest rate stabilises.”

Apart from REITs, Tan believes healthcare, education, and AI industries will see growth in 2024 In Asia-Pacific, AI-related companies are also likely to attract investments, alongside biotech and pharmaceutical related business, said EY Asia-Pacific IPO leader Ringo Choi.

Tan notes that biopharma companies are also getting a foothold in Singapore. In addition, Choi said that energy efficiency companies or companies whose business focus on ESG or carbon neutrality will also likely be the focus of investments in 2024.

Traditional sectors such as manufacturing will also thrive.

Knowing which industries are more prevalent in a market will also help ensure a company’s IPO success, said Tan.

INDUSTRY INSIGHT: MARKETS & INVESTING

Fintech investors now prioritise profitability over valuation

An expert said fintechs must have more than one revenue stream to attract investors amidst economic slump.

FINANCIAL SERVICES | by Noreen Jazul

I

nvestors have now pivoted from future business valuation to a Profit and Loss (PNL) model when evaluating which fintechs to support in the face of higher cost of capital and volatility in the market.

Anton Ruddenklau, partner and global head of fintech at KPMG International, said many investors are focusing on metrics such as revenue, customer acquisition number, and profitability in a bid to re-correct their investments.

Decline in funding The shift in inventors’ focus is also amongst the reasons why funding for fintechs in Singapore and globally declined in 2023. In 1H23, Singapore recorded a 41% HoH decline in funds raised, with deal value dropping to US$934m across 84 deals from US$1.6b across 117 deals in 2H22.

To continue receiving funding from investors, Ruddenklau said fintech founders must be able to show prudence and that they have got “structural profitability.”

“Having a structurally profitable business means your unit economics, your cost of product, your cost of customer acquisition can produce direct profit right now,”

Having a structurally profitable business means your unit economics, your cost of product, your cost of customer acquisition can produce direct profit right now

Ruddenklau said.

The KPMG expert said CEOs who can reduce their burn rate and extend their cash from an eight-month fundraising to a year will get ahead of the funding race.

Colin Kleine, the chief strategy officer and co-founder of Scalerr, said fintech firms can minimise their cash burn by deploying their capital intelligently., and a lot of companies have made “redundancies” during the global economic downturn.

“Technology companies that were business-to-consumer made a lot of redundancies because they needed to spend heavily on advertising. If your route to market is solely through advertising, you’re going to be in deep trouble. Whereas if you’re out to market go-to market partnerships and partnership announcements and strategic partners bring you leads, you’re 100% in control of those costs,” he said.

More revenue streams In Singapore where there are a lot of very savvy investors, Kleine said it is important for fintech firms to demonstrate that they generate revenue from more than one source.

“If you are a fintech and you’re

[Left] Colin Kleine, chief strategy officer and co-founder of Scalerr [Right] Anton Ruddenklau, partner and global head of fintech at KPMG International

supposed to rely on software as a service, you will find that [it’s] more difficult to raise [funds]. Instead, you need to demonstrate that you can do software as a service, plus additional services on top of that, the more streams of revenue that you have, and the more markets that you can get traction in, it makes you resilient across an economic downturn,” the Scalerr expert said.

“It’s like buying a stock portfolio when one sector is down the other sectors are going up and that’s why it’s really imperative that if you are an early stage tech startup, show that you can generate money from multiple revenue streams,” he added.

Strategic partnerships Fintechs who can show investors that they can generate demand across multiple routes to market will also have an edge over others.

Kleine, who is also an investor, said being able to generate money or revenue in a number of different markets in Southeast Asia makes a business “recession-proof.”

“If a company can demonstrate how they can leverage strategic partnerships to open up Indonesia, or open up America will be able to amplify and broaden its audience.

These are the sort of things where instead of having a one-to-one sales approach, they can leverage a strategic partner to help to open up multiple markets for them,” Kleine added.

Having a statutory board member can also make funding easier for fintechs. Kleine said the statutory board member must be someone “who has been there and done that.”

“If you have someone who is sharing this risk with you, who has already been a part of multiple successful startups, and been able to demonstrate growth success scale, if they’re sitting on your statutory board, investors will look at that. That will give them confidence that you’ve got the right people that are advising you,” Kleine added.

SINGAPORE BUSINESS REVIEW | Q1 2024

53

INDUSTRY INSIGHT: POWER

Singapore faces cost and investment hurdles in hydrogen push

Tech advances will allow SG to produce 50% of its energy from low-carbon hydrogen by 2050.

ENERGY & OFFSHORE | by Vann Villegas

N

atural gas-reliant Singapore is putting a premium on low-carbon hydrogen for its energy transition as it faces land scarcity to accommodate other forms of renewable energy. However, the hydrogen sector is still nascent, posing significant challenges in achieving the country's target due to cost and investment woes.

Under the country’s National Hydrogen Strategy, Singapore sees various use cases for hydrogen across industrial, maritime, and aviation sectors. For the power sector, which comprises 39.8% of the primary emissions in 2020, hydrogen is expected to supply half of Singapore’s power needs by 2050.

“Singapore’s National Hydrogen Strategy is a laudable start, but it is too early to conclude whether meeting its target is feasible or not. The target is a sort of conditional target depending on the technological development and international effort levels,” Kim Jeong Won, senior research fellow at the Energy Studies Institute of the National University of Singapore, told Singapore Business Review.

“However, the pace of technological development and diffusion and the level of international commitment in the relatively long term (by 2050) face considerable uncertainty,” she added, noting that hydrogen still accounts

[Singapore can be] a net importer of low-carbon hydrogen, which could be impacted by production and market volatility in exporting countries

SCAN FOR FULL STORY

for less than 0.2% of the power generation globally.

Kim said one of the greatest challenges Singapore needs to address is the high cost of lowcarbon hydrogen. Its production costs $3.4 to $12 per kilogram, much higher than the levelised cost of hydrogen from fossil fuels which is around $1 to $3 per kilogram in 2021, according to data from the International Energy Agency.

Won added that deploying large-scale hydrogen will entail infrastructure upgrades or new construction of hydrogen storage and utilisation, requiring huge investments. Add to that the fact that Singapore may not be able to produce green hydrogen domestically due to challenges in deploying renewable energy.

“It will lead Singapore to be a net importer of low-carbon hydrogen, which could be impacted by production and market volatility in exporting countries,” she said.

Progress Despite these challenges, Singapore has made significant progress in developing its hydrogen sector.

The Energy Market Authority (EMA) said that following the launch of the National Hydrogen Strategy, it launched a joint expression of interest

Artist impression of the new open cycle gas turbines to be built by Meranti Power (Photo from EMA)

54

SINGAPORE BUSINESS REVIEW | Q1 2024

exercise with the Maritime and Port Authority for proposals to develop end-to-end solutions for low-carbon ammonia, the most established hydrogen carrier.

Partnerships Aside from this, the EMA also tapped the private sector through the launch of a request for proposal to build and operate a new generation with a hydrogen-ready capacity of 600 megawatts that is targeted to start its operations by the end of 2027.

It also partnered with the academe through the Low-Carbon Energy Research Funding Initiative to drive its research and development to explore cost-effective import and hydrogen use in Singapore, as well as its carriers.

The EMA added that it is collaborating with other markets through government-togovernment deals to accelerate the development of hydrogen as a decarbonisation pathway in various areas including hydrogen supply chains, and Guarantee of Origin certification schemes.

Under the strategy, Singapore recognises the need for new infrastructure such as import and storage facilities, and distribution networks, amongst others. However, it does not expect to build significant infrastructure in the near term as this would require careful planning.

The country will also implement upskilling and reskilling of its workforce to allow them to adapt to a hydrogen-read economy, according to the strategy.

Private sector contribution Furthermore, the EMA has also appointed Meranti Power to develop two new open cycle gas turbines (OCGT) with 340 megawatts capacity each that are ready to take up 30% hydrogen and eventually fully switch to hydrogen. These new plants are expected to start operations by June 2025, replacing the retiring OCGTs.

INTERVIEW

Tuas Power diversifies business for Singapore’s energy transition The country’s sole operator will rely on biomass and renewable energy imports for decarbonisation.

ENERGY & OFFSHORE | by Vann Villegas

A

s Singapore embarks on its energy transition, Tuas Power, one of the leading utilities firms in the country, faces a tall order to decarbonise its operations as it runs fossil fuel generating facilities, including the sole coal power plant in the market.

Owned by China Huaneg Group through its subsidiary Sino-Singapore Power (Private) Co. Ltd., Tuas Power has a total installed capacity of 2,467 megawatts (MW): a 600-MW oil-fired unit, four 367.5-MW natural gas combined cycle (NGCC), and a 406-MW NGCC unit. It also operates the Tembusu Multi Utilities Complex which uses biomass coal to produce steam for power generation. This accounts for over 20% of Singapore’s energy share.

Speaking to Singapore Business Review, Tuas Power Chief Operating Officer Michael Wong candidly acknowledged that decarbonisation is a challenge for their operations.

Unfazed, though, the power company has embarked on initiatives to enhance the operational efficiency and diminish carbon emissions in its existing plants.

Wong said this entails significant upgrades. Some of the measures Tuas Power is implementing for the energy transition is increasing the share of biomass use for power generation, and exploring importation of renewable energy from Indonesia, he said.

The need for diversification becomes apparent and initiatives in that direction are being pursued by the company as a commitment to meeting the carbon emission targets by 2030 and 2050, he said.

Tuas Power employs what Wong referred to as “4D” strategies to ensure compliance with the country’s net-zero goals whilst ensuring sufficient supply. He shared more about it in detail in this interview.

How has the company performed so far this year? Please name some of your notable achievements.

Tuas Power has been successfully supporting the security of the supply of electricity to consumers in Singapore. We expect to generate more than 10,000 gigawatt-hours from our power plants. That will constitute close to more, or more than 21% of the market share for the whole of Singapore. That is actually attributed to our efforts of making use of our capacity for running sometimes one in five combined cycle plants for gasfiring units whenever available.

What challenges did you encounter, and how did you address them?

Singapore is going through an energy transition. There are a lot of concerns about this. For example, the carbon tax is going to escalate from $5 (US$3.74) per tonne to $25 (US$18.69) per tonne, starting from 2023, and then increasing to the range of $50 to $80 (US$37.37–US$59.80) per tonne a few years down the road. There is a concern about how the energy transition can actually bring us to the emission target by 2030 and then net-zero by 2050. One of the challenges for Tuas Power will be how we are going to

Michael Wong, Tuas Power Chief Operating Officer

Tembusu Multi-Utilities Complex, a bio-mass and coal-fueled power plant (Photo from Tuas Power)

SCAN FOR FULL STORY

We are also embarking on a biomass project for the multi-utilities plant that will also help to reduce carbon emissions.

decarbonise. There are... initiatives we have been doing. For our existing plants, we have been upgrading them to improve their efficiency and reduce carbon emissions. We are also embarking on a biomass project for the multi-utilities plant that will also help to reduce carbon emissions.

We have a plant which is actually burning a mixture of coal and biomass. The design of the plant is 80% coal and 20% biomass. Currently, we are using about 70% coal and 30% biomass, but we are still trying to increase the proportion of the biomass in the years to come. We have been using more local wood chips from recycled wood so that we will actually help to protect our environment.

At the same time, we are looking seriously into power import projects in Singapore. We have signed an MOU with a partner, PT Marubeni Global Indonesia, which is actually working on the Industrial Park National Strategy Project in the Batam area in Indonesia, to both supply the local market and export close to 600 megawatts average of power to Singapore. We are working to start export and import as early as 2027.

The minister also shortlisted six out of 26 proposals for the hydrogen ammonia pilot project. Tuas Power consortium is part of the six. We are working with our partners, EDF and ITOCHU, on coming up with more detailed proposals for the government for the upcoming request for proposal process.

SINGAPORE BUSINESS REVIEW | Q1 2024

55

INDUSTRY INSIGHT: HEALTHCARE

Startups focusing on ‘continuity of care’ flourish in SG’s booming health tech sector Life sciences expert says fragmented data remains a challenge for many healthcare institutions and an opportunity for tech startups.

HEALTHCARE | by Noreen Jazul

T

he majority of healthcare technology startups in Singapore are in the teleconsultation space, and only a few are offering solutions that can improve the continuity of care across players and institutions in the sector.

Such is the challenge of “fragmented data,” which is a key concern of many healthcare institutions and players, as pointed out by Dr. Xinhong Lim, a life science expert, partner and managing director at Vickers Venture Partners.

“Healthcare data is often fragmented across different systems and facilities, making it challenging to have a comprehensive view of a patients’ medical history,” Lim told the Singapore Business Review.

“We need to develop systems that allow portability and seamless sharing of patient data across different healthcare providers and platforms,” he said, noting that such data management and interoperability solutions ultimately lead to better coordination of care of patients.

But startups or enterprises will need the help of governments. For Asia Pacific, Lim underscored the importance of governments to step up efforts to digitalise and provide access

We see startups working on next gen machines, remote monitoring devices, and digital platforms to help patients with their chronic conditions more efficiently

to electronic health records, “which should enable and improve public health research and management.”

Other areas of growth Apart from solutions that focus on continuity of care, Lim said chronic disease management is also an area of opportunity for health tech startups.

“Chronic diseases such as kidney failure are increasing in Singapore and the rest of the world. We see startups working on next gen machines, remote monitoring devices, and digital platforms to help patients with their chronic conditions more efficiently,” Lim said.

One of Vickers Venture Partners’ funded startups, Singapore-based MedTech AWAK Technologies, is one of the few with solutions that help in managing chronic diseases.

AWAK Technologies has a wearable peritoneal kidney dialysis device which is the size of a handbag. The device also only requires two litres of fluids, unlike traditional dialysis machines that require 10 to 12 litres. This portability gives patients flexibility to do dialysis anywhere and improve patients’ quality of life dramatically. AWAK recently closed

Dr. Xinhong Lim, Managing Director and Partner, Lifesciences Lead at Vickers Venture Partners

56

SINGAPORE BUSINESS REVIEW | Q1 2024

a USD$20 million fundraise - one of the biggest fund raises in Southeast Asia this year.

Another key area of growth for healthcare startups in Singapore is cognitive behavioural therapy (CBT).

According to Lim, digital mental health and wellness coaching have been gaining traction amongst customers and corporations in Asia, making CBT a thematic growth area for healthcare startups.

Regardless of focus and expertise, Lim said healthcare startups must help in addressing the sector’s major pain points which is access and affordability.

“Singapore, like many other countries, faces the challenges of rising healthcare costs. We need to ensure that healthcare services and treatments are accessible and affordable to all segments of the population, especially in an environment that is pretty costly in Singapore,” Lim added.

Funding and support Singapore has seen significant growth in the number of startups and investments in the healthcare technology sector.

Data from Enterprise Singapore showed that in 2022, healthtech was also the top vertical under the “Human Health and Potential” sector, with a total of 22 deals and value of US$643m (SG$876m).

According to the report, healthtech also accounted for a third of the total deep tech funding in Singapore.

Lim said Singapore’s favourable business environment, robust infrastructure and strong government support all contributed to the growth of digital health startups in the country.

Across the Southeast Asian region, Lim said he believes Singapore leads in terms of a mature and supportive digital healthcare startup ecosystem.

To foster further growth in the economy, he pressed on the need for “continued investment and funding support,” and a “supportive and clear regulatory framework.”

EVENT COVERAGE: SFF 2023

Generative AI, CBDCs to shape Singapore’s financial future in 2024 Singapore will be piloting the use of wholesale CBDCs next year.

G

FINANCIAL SERVICES | by Frances Gagua

enerative artificial intelligence (AI) and central bank digital currencies (CBDCs) may be central features of domestic transactions in 2024, industry experts and regulatory authorities featured in the eighth edition of the Singapore FinTech Festival (SFF).

The 2023 iteration of SFF placed generative AI as its central theme, and banks, financial institutions, startups, and technology companies showcased their latest developments during the three-day event held, drawing a record 66,000 participants from across 115 countries. Over 2,400 were government and regulatory attendees across 530 central banks, regulatory institutions, and government organisations.

CBDCs and stablecoins In his annual address, the Monetary Authority of Singapore’s (MAS) managing director, Ravi Menon, revealed the country’s plans to pilot CBDC use in 2024 for wholesale transaction purposes.

During the pilot, wholesale CBDCs will be used for domestic payments. Banks will issue tokenised bank liabilities through the form of claims in balance sheets. Retail customers can then use the tokenised bank liabilities in transactions with merchants, who will then credit these with the participating banks.

“Clearing and settlement thus occur in a single step, on the same infrastructure, unlike the current system in which clearing and settlement take place on different systems, and settlement occurs with a lag,” Menon told attendees at the 16 November event.

SFF 2023 participants got a sample of how CBDCs will work in Singapore, with OCBC and UOB collaborating to demonstrate the fungibility of digital Singapore dollars.

During the event, attendees were able to get a S$5 digital gift from the OCBC booth, which they can then redeem at the UOB booth.

The settlement and the clearing

MAS Managing Director Ravi Menon giving what may be his final speech as he stepped down on 1 January 2024 (Photo from Singapore Fintech Festival)

With [AI], you can imagine the number of use cases that could possibly happen, whether it’s optimising operational efficiency, whether it’s creating customer experiences

of that digital money between two banks is all done on the blockchain, Ravindra Kumar, Managing Director of Group Technology Architecture at OCBC, told Singapore Business Review during the event.

Singapore has been hinting on its interest in wholesale CBDCs as early as 2021. In the 2022 edition of SFF, Menon had said the same, whilst reiterating Singapore’s discouragement on investing in cryptocurrencies, calling the medium a “non-starter.”

Menon said that Singapore was more open to the idea of using stablecoins. “Stablecoins — if well regulated — can potentially play a useful role as digital money alongside CBDCs and tokenised bank liabilities,” he said.

In 2023, MAS granted in-principle approval under the Payment Services Act to three entities — StraitsX SGD Issuance, StraitsX USD Issuance, andPaxos Digital Singapore — that are expected to issue stablecoins that comply with MAS’ upcoming stablecoin regulatory framework.

Generative AI Artificial intelligence (AI) is nothing new to banks: global and Asian heavy weights such as JPMorgan & Chase, Citibank, and Bank of America, to name a few, have long applied AI for automated chatbots, fraud detection,

biometric identification, money laundering risk detection, to name a few.

But these AI applications are specific to one or two tasks which they have been programmed to do.

Generative AI takes the step further, breaking down former limits with its ability to generate responses, data analysis, risk strategies, amongst others.

“Computer-generated AI is about creating content, whether the content is about images, text and video,” HSBC Singapore chief operating officer Tancy Tan told Singapore Business Review in a chat during at the SFF. “With that itself, you can imagine the number of use cases that could possibly happen, whether it’s optimising operational efficiency, whether it’s creating customer experiences.”

More recently, OCBC rolled out a generative AI chatbot to its 30,000 employees globally in November, 2023.

This follows a six-month pilot involving 1,000 OCBC staff across multiple functions who have been testing the generative AI chatbot OCBC GPT. On average, participants of the trial shared that they were able to complete their tasks about 50% faster than their pervious speed, OCBC said.

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OPINION

IRENE MIRA

Redefining lead: Singapore's success in international arbitration

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omparison is what we inevitably do almost daily. Even more so in business and legal industries where competition is tight and thriving.

Although this article begins with the word ‘comparison’, the message is not to compare Singapore and London in the context of international arbitration. Rather, the article aims to provide insights into how the two countries successfully leverage their economic activities and subsequently link international business and dispute resolution (particularly arbitration) into a working ecosystem.

IRENE MIRA Deputy Director of Arbitration & ADR for South Asia, ICC International Court of Arbitration

Background What bridges businesses with arbitration? What does “seat of arbitration” entail? Keep these questions in mind as you read this article. Let us delve a bit further and consider these points: a) Businesses and arbitration do not always operate in silos; b) Businesses and arbitration give legitimacy to each other in different ways.

Business transactions always carry risks of disputes. This is precisely where arbitration comes in. To illustrate further, imagine Company A which operates in Malaysia enters into a sale and purchase agreement (“SPA”) with Company B which operates in England. The SPA has dispute resolution clauses which record the consent of both Companies to resolve any dispute that may arise out of the SPA by way of arbitration seated in Singapore.

Here, both Companies benefit from having an agreement which contains an arbitration clause. This is because they will be able to pursue their claims in an appropriate legal forum with rules and procedures.

Eventually, the winning party will be able to recover all or some of their losses through a legally binding decision issued by a panel of thirdparty neutral(s) and enforceable by law before the Singapore Courts, hence the crucial role of the seat of arbitration.

This illustration provides more insights into the initial two questions: a) While businesses and arbitration belong to two different industries and have their trends and markets, one cannot function without the other. As such, there are many opportunities where the two will work in intertwine; b) Arbitration is not just a mere dispute resolution mechanism. It has its legal framework which is internationally implemented in practice.

Arbitration is also a business as it promotes and supports the flow of international investment. When a country has a legal framework of arbitration, it signals that it is open for business and capable of providing security to economic actors by way of a confidential and neutral dispute resolution process that is void of their home country jurisdictions and is a legally enforceable decision.

five most preferred seats of arbitration. The other four popular seats are usually Paris, Singapore, Hong Kong, and Geneva. This is not surprising as London enjoys the United Kingdom’s influence in international trade and investment as well as centuries of legal scholarship which spreads to and is adopted in many countries’ legal systems including that of Singapore. However, in 2021, Singapore for the first time was ranked equally with London and top of the 2021 Survey as one of the most preferred seats of arbitration. It was the only jurisdiction in Asia Pacific to get the top spot.

So, what may explain such a catapult for Singapore?

Generally, Singapore’s success in international arbitration is attributed to a combination of support from the Government, sophisticated Judiciary and arbitration law, and the country’s strategic placement as an economic powerhouse. While the first two factors are vital, Singapore’s economic directives are much applauded for and yet not too often discussed in the context of legitimising international arbitration.

Almost 40% of the global Foreign Direct Investments (FDI) inflows were into Asia in 2021. It bears mention that in 2022, foreign direct investment inflows (“FDI”) in developing Asia account for more than half of the global FDI, and ASEAN Member States and India have pivotal roles as major recipients of FDI. As a free market economy, Singapore is a business-friendly hub with a transparent tax regime and a friendly regulatory environment.

The country now houses the global headquarters of multinational corporations and is a fertile ground for startups. All these by no means are achievable without Singapore’s commitment as a global business hub but also as an international dispute resolution hub. International businesses in Singapore may rest assured that the country continuously secures innovation, economic growth, and access to the rule of law in equal measures.

Whilst the United Kingdom attempts to manage recession risks to speed up its economic recovery post the COVID-19 pandemic, the country’s arbitration landscape does not seem to bear the brunt of the economic crisis. In September 2023, the United Kingdom Law Commission published recommendations for the reforms of the Arbitration Act 1996 to ensure the United Kingdom remains a leader in international arbitration and that London stays as a leading international seat of arbitration.

Aware of Singapore’s reputation as an equally preferred seat of arbitration, the move demonstrated the country’s intention to have an up-to-date and dynamic arbitration law to maintain trust from business and legal communities and to stay within such an ecosystem.

Singapore and London as preferred seats of arbitration Historically, London has always been at the forefront of the world’s most preferred seats of arbitration. If we consider just the last five (5) years, since 2018 the leading and authoritative Queen Mary University of London Survey on International Arbitration (“Survey”) consistently shows London ranked first in the top

Conclusion Today, business and legal professionals have options and flexibility in determining the course of dispute resolution. In doing so, they should also consider having their disputes administered by a reputable arbitral institution - one with a proven track record and a seat of arbitration most suitable for the circumstances of their disputes.

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OPINION

GRACE WONG

Small but nimble: The future of regulatory compliance for smaller financial firms in Singapore

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n this rapidly evolving financial regulatory landscape, smaller financial firms continue to face challenges in navigating the complex regulatory environment. In recent times, we have seen the Monetary Authority of Singapore (“MAS”) meting out more incentives and grants to smaller financial institutions (“FIs”) to help them undergo deeper transformational business and operations upgrading, innovation and internationalisation.

Most recently in August 2023, MAS announced that it will commit up to $150m over three years under the renewed Financial Sector Technology and Innovation Scheme. One of the key pillars of the scheme is to continue to support advanced capability development and adoption in Artificial Intelligence and Data Analytics (AIDA) and Regulation Technology (RegTech). Specifically, MAS will focus on promoting AIDA adoption in smaller financial firms and supporting the needs of less digitally mature firms looking to acquire RegTech solutions.

Generally speaking, the MAS defines smaller financial institutions as those with an employment size of not more than 200 employees.

Due to their limited size and resources, it is widely conceded that smaller FIs face unique challenges in navigating a myriad of compliance requirements. As technology continues to shape today’s world and industries, including finance, the future of compliance holds both challenges and opportunities for these smaller players.

Smaller FIs have limited resources and face the uphill challenge of a mismatch in the demand and supply of compliance talents and resources available to them.

In addition, regulatory expectations and requirements continue to evolve and become more complex over time. However, with technological advancements, the proactive adoption of innovative strategies can empower these smaller firms to meet regulatory demands sustainably, while remaining agile and competitive.

Embracing Technological Advancements Today, technological advancements are levelling the playing field for all, particularly smaller companies. The adoption of technology potentially allows smaller FIs to operate with the same effectiveness and efficiency as larger corporations. These smaller outfits are small but nimble.

Consequently, they can spring to adopt technological solutions more adeptly and efficiently, without the legacy and institutional baggage that oftentimes come with bigger institutions.

With technology, there can be increased automation and digitalisation of typical compliance processes to streamline operations. Cloud technology continues to be a game-changer for smaller FIs as they offer accessibility, scalability and cost-efficiency, as well as the integration of big data analytics to augment the compliance function further. AIDA can be increasingly adopted as a powerful way to generate insights and facilitate decision-making for smaller FIs. Firms can use data analytics to analyse customer behaviour, voluminous transactions and various data points for signs of suspicious activities and anomalies. These insights help in identifying potential compliance issues early and allow firms to take appropriate action.

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GRACE WONG Partner Cambridge Advisers Pte Ltd

In addition, firms can utilise Artificial Intelligence to assess risks, predict and analyse vast amounts of data, and even pre-empt potential breaches. Further down the line, more advanced applications can harness the power of deep learning e.g. ChatGPT, to provide profound analysis for high-level Q&As regarding complex compliance issues and regulations.

RegTech: Working Smart RegTech is a current catalyst driving change in the compliance landscape.

RegTech solutions allow for increased automation and efficiency, removing (automating) manual and highly repetitive compliance tasks to ensure consistency in the quality of work and allow firms to tailor solutions to their specific niche and needs. There can be automated tools to streamline data collection, leading to the centralisation and management of records, allowing for real-time risk assessment and monitoring, reporting, audit trails and more.

One huge advantage RegTech solutions offer is customisation, where one size does not fit all. Smaller FIs can expect to see an increase in tailored compliance solutions as technology allows for the creation of modular systems, allowing firms to adopt tools that address their specific regulatory compliance needs and concerns. Taken together, the future sees technologies becoming more intuitive and empowering for firms, even more so for smaller FIs who can take advantage of technology to even the playing field.

Outsourcing: Expertise on Demand Besides employing technological advancements, smaller FIs can up their game by way of strategic outsourcing. Smaller firms can leverage the expertise of third-party providers who specialise in compliance and have the expertise in interpreting and implementing intricate regulatory requirements.

The outsourcing approach provides access to compliance expertise to supplement in-house capabilities, if any; and offers cost-savings compared to maintaining a dedicated in-house compliance function.

This in turn allows smaller firms to focus on their core competencies and business growth, while ensuring that compliance is vested in the hands of specialised compliance professionals.

Conclusion The advent of technology is a real advantage for smaller FIs in Singapore and presents opportunities like never seen before. By embracing a good balance of technological solutions and compliance services outsourcing, smaller firms can achieve much efficiency and potentially achieve a competitive edge compared to their bigger counterparts.

Smaller FIs are now receiving more support from MAS for the use of technological solutions to uplift and sustain their firms’ risk management and compliance operations. By adopting forward-looking strategies, smaller companies can capitalise on this technological wave.

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OPINION

LARISSA MURPHY

Could Singapore's obsession with productivity be problematic for its future?

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ince 1965 in the US across all industries, productivity has increased by an aggregate of close to 150%. In industries such as technology and telecoms, labour productivity has grown by more than 800%.

Yet in the same timeframe between 1965 and 2015, the Return on Assets for US companies has declined by over 70%.

Interestingly, 52% of companies that were in the Fortune 500 in 2000 are now extinct, lifespan in the Fortune 500 list has also decreased to around 15-20 years. This phenomenon is being referred to as “The Business Apocalypse” or “Creative Destruction.”

The companies that are growing and thriving are doing so because of innovation and creativity, not because of productivity and efficiency.

Singapore seems to have put too many eggs in one basket. You only need to look at the Country Rankings in the World Banks Government Effectiveness Index to see that Singapore comes top and has done so every year for the last seven years.

It has been number one for 19 out of the 26 years for which the index exists, and it leads by a strong margin of more than a quarter of a point in the latest index. Whilst this index measures the effectiveness of the country’s government to achieve this it is apparent that the efficiency of operations plays a big part.

When it comes to efficiency Singapore has it nailed. Upon gaining independence Singapore embarked on a productivity drive.

The first productivity performance campaign was launched in 1975 with the slogan “Productivity Is Our Business” and this has been the backbone of Singapore’s Success. It has thrived economically based on productivity.

From 1981 to 1995, 60% of Singapore’s average economic growth of 7.6% came from productivity growth, which averaged 4.5%.

In 1985, Singapore even launched a children’s club called "Teamy, the Productivity Bee." Singapore’s love affair with productivity has endured and continues today, through Enterprise Singapore there are grants for productivity solutions, and the Singapore Productivity Centre runs many initiatives around improving productivity.

So, it seems that despite the status of the small city-state the aim is to continue the pursuit of productivity to achieve even greater productivity and efficiency. It is understandable why SG is continuing its productivity and efficiency drive. Government effectiveness and efficiency have been significant contributors to the impressive growth in the nation's GDP. GDP growth in the city-state has been amongst the world's highest, at an average of 7.7% since independence and topping 9.2% in the first 25 years. These statistics demonstrate just how impressive Singapore’s achievements have been since independence. However, I can’t help wondering if this relentless pursuit may be to the country’s detriment in the future.

Singapore has an amazing well-educated workforce, the education system here is one of the best in the world, it is accessible to all and the vast majority of Singaporeans in the workforce and those coming into the workforce have excellent academic qualifications. So why then do we constantly hear that companies need to bring in foreign “talent”?

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LARISSA MURPHY Vision Creator Dare Design

Why can companies not find the skill sets they need amongst the local population? After all, there is a whole population of well-educated workers brought up on a diet of ambitious productivity.

I can testify that most Singaporeans I have encountered are exceptionally hard-working, team players who can undertake given tasks with amazing efficiency.

Therein lies the problem, they can undertake given tasks, and follow instructions effectively, much like teamy the bee, that many were brought up with, they work hard as a collective efficiently and productively doing what they are told.

When you ask them to think, to be creative, to take initiative on tasks with no instructions or preordained methodology many struggles.

So, I have started to feel that when organisations talk about the need for imported “talent” what they are talking about is the need for creativity.

Where does this leave Singapore with its high efficiency and productive workforce which seems low on creativity?

Singapore seems to have acknowledged the role of innovation in future growth, but there is a tendency to package innovation with productivity as if the purpose of innovation is to enhance productivity or productivity will somehow increase innovation.

However, productivity does not drive innovation, creativity does, and although innovation can lead to improved productivity, innovation alone is delivering economic returns regardless of productivity.

Singapore does create a wonderful business ecosystem and great support for startups but is it capable of making a shift in focus away from productivity to deliver creativity? This will require a huge mindset shift. It will require a shift in thinking about everything from education to how, where and even why we work.

Creativity requires people to think and the ability for both convergent and divergent thinking. It is a rare ability in the adult population globally and I feel it is even more so in Singapore, hence the need for imported creative talent.

It seems an almost impossible task to move away from the hive mentality and convert a workforce of efficient and productive worker bees to a population of creative problem-solving innovators, who, by nature, would be more individualistic, inconsistent, erratic and beyond the realms of current societal norms.

Creativity requires greater autonomy, freedom to fail a tendency to break or ignore rules, and taking risks and is certainly less measurable than productivity.

Could Singapore cope?

The thing that I admire most about Singapore in the time I have been here is that it is a place where nothing is considered impossible.

The ability to adapt and embrace change is incredible so too is the appetite to learn and improve. So, I believe that once Singapore realises and embraces the need for greater creativity it can happen.

The first step will be to overcome the obsession with productivity, that’s holding us back.

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